HomeWinBuzzer NewsMicrosoft Announces Massive Q3 Revenue Dirven By Azure and Office

Microsoft Announces Massive Q3 Revenue Dirven By Azure and Office

Microsoft’s success continued in Q3 2021 as Azure, Office, and Windows 10 all saw substantial growth during the quarter.


has reported its fiscal third quarter earnings for 2021, once again showcasing an excellent financial situation for the company. The company has again beat Wall Street expectations by delivering $41.7 billion in revenue. Microsoft's growth continues without exception as this quarter's revenue was a 19% increase on the same period last year.Over recent years, Microsoft has been moving through a period of massive growth, including surpassing $100 billion in revenue for the first time and being valued over $1 trillion. It's arguably the most successful period in the company's history, not least because it came at a time when many were predicting the end of Microsoft.

Of course, CEO Satya Nadella's cloud-first approach has driven the growth, and it was the story of the bumbler Q3, 2021 too. As well as the revenue boost, Microsoft also saw operating revenue jump of 31% to $17 billion year-on-year, while net income stood at $15.5 billion, 13% up YoY.

Microsoft splits earnings into three categories covering all its businesses: Intelligent Cloud, Productivity and Business Processes, and More Personal Computing. Here's how those businesses looked over the last three months:

  • Intelligent Cloud – $15.1 billion revenue (up 23%).
  • Productivity and Business Processes – $13.6 billion revenue (up 15%).
  • More Personal Computing – $13 billion revenue (up 19%).

Productivity and Business Processes, the division that including commercial and consumer Office, , and Dynamics. During the Q3 period, Office Commercial products and cloud service increased revenue by 14%, with Office 365 revenue jumping 22%. Microsoft also says it saw a 15% YoY growth in the number of Office 365 seats.

However, Office Commercial products not on the cloud fell 25% since last year. Microsoft attributes the decline to an increasing “shift to cloud offerings” in the business community. LinkedIn continues to perform well since Microsoft bought the business social network for $26.2 billion in 2016. Last quarter, revenue for the platform grew 25% year-on-year.

Cloud and Personal

While most Microsoft departments are doing well, it is Intelligent Cloud that has driven the company's huge success. This is the division that is home to and server products. Once again, Azure was thriving over the last three months, with a 50% revenue boost compared to Q3 2020.

More Personal Computing is a division that houses Microsoft's consumer products, such as , Xbox, and Surface. Looking at Windows OEM revenue, Microsoft posted a 10% increase. The company says this comes from a solid demand in PC from consumers. This is highlighted by a 44% YoY improvement for non-Windows Pro revenue.

Surface saw a decline over the last quarter, dropping 12% since last year, but still totalling $1.5 billion in revenue. It's unclear why this happened, but Microsoft's Surface output over the last year has been uninspiring on the computing front. Surface Duo is an interesting Android smartphone, but has not been a big seller.

Gaming is continuing to see big gains due to the release of the Xbox Series X and Xbox Series S last November. Revenues increased 50% in total, with Xbox hardware revenue jumping 232% year-on-year. That makes sense considering the already mentioned console launch and the Xbox One ending it's generation during Q3 2020.

Xbox Series consoles have also driven interest in related products like Xbox Game Pass and Xbox Live Xbox Network, which saw a 34% revenue increase.

Tip of the day:

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Luke Jones
Luke Jones
Luke has been writing about all things tech for more than five years. He is following Microsoft closely to bring you the latest news about Windows, Office, Azure, Skype, HoloLens and all the rest of their products.

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