Microsoft revenue holds steady for its fiscal Q3

Microsoft released its fiscal 2016 third-quarter results today. The company made $5.3 billion in operating income on $20.5 billion in revenue. That's a 20% decrease in operating income and a 6% decrease in revenue compared to a year ago. Here's a quick summary of the results:

  Q3 FY 2016 Q3 FY 2015 Change
Revenue $20.5 billion $21.7 billion down 6%
Operating income $5.3 billion $6.6 billion down 20%
Net income $3.8 billion $5 billion down 24%

The company's More Personal Computing division, which handles familiar products like Windows, Surfaces, and the Xbox, took in $9.5 billion in revenue, up 1% year-over-year. Windows OEM revenue fell just 2%, while Surface revenue increased to $1.1 billion, up from $713 million a year ago. Windows Phone continues its  free-fall, though. Microsoft says its mobile revenue fell 46% compared to a year ago. Microsoft says Windows 10 is now active on over 270 million devices.

The Intelligent Cloud division generated $6.1 billion in revenue, a 3% increase from a year ago. In constant-currency terms (eliminating the effects of exchange rates), the company says its server products and cloud-services revenue grew 5%. Azure cloud revenue increased 120%, and the company says usage of its Azure compute and Azure SQL database services has more than doubled since this time last year.

Productivity and Business Processes, which is responsible for Office and other productivity software, grew its revenue 1% year-over-year to $6.5 billion. Office 365 commercial revenue increased 63% from a year ago in constant currency, while Office 365 consumer revenue grew 6% by the same measure. Microsoft's Dynamics CRM revenue grew 9% in constant-currency terms.

Microsoft says it'll release guidance for the next quarter during its earnings webcast.

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