Microsoft's Q4 2019 earnings: Windows up a lot
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Microsoft has released their earnings report for the Q4 of their 2019 fiscal year (as distinct from the calendar year).
As Windows 7 nears end of life, Windows OEM Pro revenue has once again rebounded, growing 18% YoY. Microsoft attributes this to healthy Windows 10 demand in advance of Windows 7 end of support and increased inventory levels.
In contrast, consumer sales (Windows OEM non-Pro revenue) declined 8%, as pressure on the entry-level PC market continues.
Enterprise was again Windows’s saving grace with Windows Commercial products and cloud services revenue growing 13% (up 16% CC) driven by an increase of multi-year agreements that carry higher in-quarter revenue recognition
Windows Commercial products and cloud services revenue grew 13% (up 14% CC) with continued customer adoption of premium offerings.
Overall Microsoft’s More Personal Computing business grew 4%, with profit driven by the sales mix moving to a higher gross margin (presumably professional) Windows business.
