Microsoft rides the cloud, Office and Windows to sustained growth in Q3 2022

The company's revenue was $49.4 billion and net income was $16.7 billion in the third quarter. The revenue is up 18 percent and the profit is up 8 percent. The server and cloud services revenue grew by 29 percent, and Microsoft Cloud grew by 32 percent.

There were a lot of reasons to think Microsoft would smile this quarter. While the PC industry has started to decline from its highs, it was not Microsoft Windows machines that were responsible for the entire dip. The Xbox just had its best sales in 11 years, beating the PS5 in the process.

Microsoft says its personal computing business, including Windows and Xbox, was up 11 percent in the third quarter. Xbox hardware revenue was up 14 percent, with a 4 percent jump for Xbox content and services revenue driven by growth in Xbox Game Pass subscriptions and first-party titles, for an overall 6 percent boost for gaming revenue to $3.74 billion.

We were eager to see if Microsoft's big Office and cloud businesses also stayed good, and the answer is definitely yes: 17 percent revenue growth in productivity and business processes this quarter. Revenue was up 26 percent overall to $19.1 billion.

This quarter, the growth of the company is up 34 percent, after growth of 37 percent, 42 percent, and 46 percent in the previous three quarters.

Even though the company warned of a dip, its revenue increased 8 percent last quarter, and Microsoft's Surface devices are doing well at a 13 percent revenue increase. The 10th anniversary of the Microsoft Surface is in 2022, and we expect the company has more up its sleeves than the lackluster Surface Laptop SE.

There is one image with all the gains and losses for Microsoft's individual businesses.

This is how much each of the businesses did in the past quarter in terms of dollars.

Microsoft's purchase of the gaming company, which is set to make it the third-largest gaming company by revenue, won't feature in these earnings.

We will add the best comments to this post when Microsoft comments on all these segments during the earnings call this afternoon.

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