Even Windows revenue is up in Microsoft’s $26.8 billion 3Q18

Microsoft has posted the results of the third quarter of its 2018 financial year, running up until March 31, 2018. Revenue was $26.8 billion, up 16 percent year on year; operating income was $8.3 billion, up 23 percent; net income was $7.4 billion, up 35 percent; and earnings per share was $0.95, up 36 percent.

Microsoft currently has three reporting segments: Productivity and Business Processes (covering Office, Exchange, SharePoint, Skype, and Dynamics), Intelligent Cloud (including Azure, Windows Server, SQL Server, Visual Studio, and Enterprise Services), and More Personal Computing (covering Windows, hardware, and Xbox, as well as search and advertising). This reporting structure has been retained even though the Windows division has been reorganized with responsibilities split between different groups.

The company also continues to report numbers from LinkedIn both as part of the Productivity group and independently. Microsoft has now owned LinkedIn for a full year, enabling for the first time year-on-year comparisons. LinkedIn revenue was $1.3 billion, up 37 percent, with a cost of revenue of $0.4 billion, up 11 percent, and operating expenses of $1.1 billion, up 19 percent. This produces an operating loss of $0.25 billion, which is 35 percent lower than it was for the same quarter last year.