For the fiscal year ended June 30, Microsoft’s revenue grew by 18%, or $50.1 billion, to $331.8 billion. The corporation’s main drivers were cloud services and artificial intelligence monetization, while Xbox and Windows continued to lose ground.
For the fiscal year ended June 30, Microsoft’s revenue grew by 18%, or $50.1 billion, to $331.8 billion. The corporation’s main drivers were cloud services and artificial intelligence monetization, while Xbox and Windows continued to lose ground.
As GeekWire reports, this is evidenced by data from the annual report published by the company. Microsoft’s official financial reporting structure divides the business into three general segments, but a detailed breakdown by product category shows the real picture of monetization.
Two areas accounted for the lion’s share of Microsoft’s annual revenue. Server products and cloud services accounted for $31 billion of the total revenue growth, reaching a combined figure of $129.4 billion — almost 40% of the corporation’s total annual revenue. During a call with investors, Microsoft CEO Satya Nadella noted that Azure’s annual revenue exceeded $100 billion for the first time this year .
The second fastest growing segment was Microsoft 365 Commercial, which added $14.2 billion and grew by 16% to $102 billion. In both areas, the key factor was the implementation of AI solutions, including artificial intelligence infrastructure, GitHub Copilot, and Microsoft 365 Copilot.
Instead, the corporation’s traditional business lines are showing a decline. Windows and devices revenue fell by $230 million to $17.1 billion. The PC operating systems business has remained flat for the past four years and is already second only to LinkedIn, which brought in $19.8 billion.
Xbox gaming revenue fell $1.7 billion to $21.8 billion. This is the division’s first annual decline since the $69 billion acquisition of Activision Blizzard. The decline in the gaming sector comes amid a massive reorganization of the Xbox division, which is accompanied by job cuts and asset write-offs.
