Microsoft’s Q4 2016 Earnings: Office revenue grows by 5%


Microsoft today released the company’s earnings report for Q4 2016 (Fiscal Year). Microsoft reported a revenue of $20.6 billion GAAP, and $22.6 billion non-GAAP, with a net income of $3.1 billion GAAP, and $5.5 billion non-GAAP for Q4 2016. Microsoft’s Office business saw an increase of 5%, which is pretty good. However, Office 365’s commercial products revenues declined by 12%. The company announced that Office 365’s commercial seats grew by 45%. Additionally, the user base for Office, Exchange, SharePoint and Skype for Business has also continued to increase, according to the company:

  • Office commercial products and cloud services revenue grew 5% (up 9% CC). Office 365 commercial revenue grew 54% (up 59% CC) reflecting continued adoption of cloud offerings by customers. Office commercial products revenue declined 12% (down 9% CC).
  • Office 3655 commercial seats grew 45%
  • Continued installed base growth across Office, Exchange, SharePoint and Skype for business
  • Now have nearly 90,000 transacting partners selling Office 365 to small business customers

You can find the full earnings report here.