Revenue in Productivity and Business Processes segment increased 14% to $11 billion in Q4 topping the company’s guidance of $10.55 billion and $10.75 billion. Intelligent Cloud revenue surged 19% to $11.4 billion versus the estimated range of $10.85 billion and $11.05 billion. Revenue from More Personal Computing division rose 4% to $11.3 billion compared to the guided range of $10.8 billion and $11.1 billion.
“Q4 commercial cloud revenue increased 39% year-over-year to $11.0 billion, driving our strongest commercial quarter ever,” said CFO Amy Hood. Server products and cloud services revenue increased 22% driven by Azure revenue growth of 64% in Microsoft’s largest quarter of the year.
Xbox Live monthly active users grew by 14% to 65 million. Xbox hardware revenue declined 48% and Xbox software and services revenue dropped 3%. Gaming revenue declined 10% with Xbox software and services revenue down 3%.
Office Commercial products and cloud services revenue rose 14% driven by Office 365 Commercial revenue growth of 31%. Office Consumer products and cloud services revenue grew 6%. Dynamics products and cloud services revenue increased 12% driven by Dynamics 365 revenue growth of 45%.
LinkedIn revenue grew 25% with strong momentum across all lines of business. LinkedIn sessions grew 22% with record levels of engagement and job postings.
Last week, Cowen initiated the coverage on Microsoft with Outperform rating and a price target of $150, and Wells Fargo maintained its Outperform rating with increasing the price target to $160 from $145.
Microsoft stock had gained 10% in the last three months and 34% in the year-to-date period.