Microsoft Reports Strong Q3 2023 Results with Revenue Growth Across Business Segments

Revenue in the Productivity and Business Processes segment was $17.5 billion, an 11% increase (15% in constant currency). This growth was driven by Office Commercial products and cloud services, which saw a 13% increase (17% in constant currency), with Office 365 Commercial revenue growing by 14% (18% in constant currency). Microsoft 365 Consumer subscribers also grew to 65.4 million. LinkedIn revenue increased by 8% (10% in constant currency), while Dynamics products and cloud services revenue increased by 17% (21% in constant currency), driven by Dynamics 365 revenue growth of 25% (29% in constant currency).

Revenue in the Intelligent Cloud segment was $22.1 billion, an increase of 16% (19% in constant currency). Server products and cloud services revenue increased by 17% (21% in constant currency), driven by Azure and other cloud services revenue growth of 27% (31% in constant currency).

Revenue in the More Personal Computing segment was $13.3 billion, a decrease of 9% (7% in constant currency). Windows OEM revenue decreased by 28%, while Devices revenue decreased by 30% (26% in constant currency). However, Windows Commercial products and cloud services revenue increased by 14% (18% in constant currency), and Xbox content and services revenue increased by 3% (5% in constant currency). Search and news advertising revenue, excluding traffic acquisition costs, increased by 10% (13% in constant currency).

Microsoft returned $9.7 billion to shareholders through share repurchases and dividends in Q3 2023. Overall, the company's strong performance in Q3 2023 demonstrates its continued success in driving growth across its business segments, particularly in the Productivity and Business Processes and Intelligent Cloud segments. The decrease in revenue in the More Personal Computing segment was offset by growth in other areas, indicating Microsoft's ability to adapt to changing market conditions.