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Microsoft posted its report for the fourth quarter of the financial year recently, with a revenue of $20.6 billion. Net income was at $3.1 billion, compared to a $3.2 billion loss last year.

Thier operating income was $3.1 billion, compared to a loss of $2.1 billion. Revenue for the quarter sat at $20.6 billion, which marks a seven percent decline.

The sudden growth in Microsoft’s commercial cloud computing business surprised some, lifting its shares by more than four percent higher than Wall Street’s expectations. This put earnings per share at $0.39.

When comparing the full financial year, a decrease of 9 percent can be noted in revenue, with a total of $85 billion. Operating income was up seven percent at $20.2 billion, while net income was up by 38 percent.

Earnings per share also rose significantly, the $2.79 marking a 42 percent increase on last year. However, it’s important to note that in 2015 there was a $7.6 billion write-down of Nokia’s assets, whereas 2016 write-downs were just $950 million.

Microsoft also reported Non-GAAP financials. All Windows 10 revenue was booked at the point of sale rather than over two to four years. Different accounting of impairment, integration and restructuring models also came into play. The alternate method puts revenue for the quarter up by two percent, operating income down three percent and net income up by eight.

Products

The company reported increased year on year growth in every product segment for the quarter. The biggest gains were unsurprisingly in their Cloud business, but Windows revenue was also very high.

The companies productivity reporting segment covers Office, Exchange, SharePoint, Skype and Dynamics. Revenue for these was up 5 percent at $7 billion, and operating income was down five percent. This is partially due to commercial Office revenue, which rose by nineteen percent year-on-year.

Intelligent Cloud revenue was at $6.7 billion, up seven percent, and operating income was down seventeen percent. The segment includes Windows Azure, the revenue for which was up five percent when bundled with server products, and 103 percent year on year. The section also includes Windows Sever, SQL Server, Visual Studio and Enterprise Services.

Surprisingly, Personal Computing revenue (Windows, search and advertising, hardware, Xbox) was down by four percent at $8.9 billion, and operating income rose by 59 percent. Despite this, Windows license revenue rose, consumer sales up by 27 percent and Windows Pro revenue increased by two.

The culprit for the fall then was Microsoft’s phone sales, which dropped by 71 percent. Microsoft’s Surface devices did well, rising by nine percent, but Xbox revenue also let the category down when it fell by nine percent.

The finances leave a mixed year for Microsoft, with significant increases in some categories countered by poor phone and Xbox sales. As they continue to refocus and expand their cloud business, however, next year could look a lot better.