Microsoft Announces Record 4th-Quarter Revenue, Over $16 Billion

Microsoft’s quarterly (and yearly) earnings report came out today, and it’s mostly good news: major sales for Windows 7 and Xbox, with Bing losing money but showing positive growth.

Next up in the parade of quarterly earnings is Microsoft, reporting both its quarterly and fiscal yearly revenue, which ended on June 30th. And it’s good news for the giant, despite all that talk about Apple passing them in market cap. Microsoft showed a quarterly revenue of $16.04 billion (up 22% from the year-ago quarter) and a yearly revenue $62.48 billion (up 7%), both of which are records.


Microsoft sold a whopping 175 million Windows 7 licenses to date, although interestingly, 7% more licenses sold than PCs. That indicates a healthy upgrade trend, which makes sense: Windows 7 can run on slower (read: older) PCs, so those with Windows Vista or even Windows XP machines may have bought upgrades rather than new computers.

In addition, Microsoft noted in a conference call that while the US PC market has improved for Windows machines, emerging markets, otherwise known as developing countries like China and India, are the site of much of Windows 7’s growth.

Xbox continued to be Microsoft’s ace in the hole, selling 1.5 million consoles in the quarter and bringing the total number of Xbox Live subscribers past 25 million, a damned impressive number. Remember, Microsoft only got into the console game one generation ago, and it’s proven to be one of their most popular and well-regarded products ever.

“Online services,” which mostly refers to Bing and its satellite services like Bing Maps, was the only major sector of Microsoft to lose money. But even that has a silver lining–growth in Bing has been up every single month for the last 13 months, and as it’s a “growth product,” that’s probably just fine with Microsoft.

You can read Microsoft’s official statement here.

Dan Nosowitz, the author of this post, can be followed on Twitter, corresponded with via email, and stalked in San Francisco (no link for that one–you’ll have to do the legwork yourself).

About the author

Dan Nosowitz is a freelance writer and editor who has written for Popular Science, The Awl, Gizmodo, Fast Company, BuzzFeed, and elsewhere. He holds an undergraduate degree from McGill University and currently lives in Brooklyn, because he has a beard and glasses and that's the law.