Today, Microsoft announced its financial results for the fourth quarter of the fiscal year 2020, related to the period between April 1 and June 30.
Firstly, we get an update on the performance of the More Personal Computing business, which includes Microsoft’s gaming division and the Xbox brand.
All the relevant data is included in the slides below.
Xbox Content and services revenue grew a whopping 65% year-on-year ($1.2 billion), with a 64% growth ($1.3 billion) in overall gaming revenue driving a 14% revenue increase for the whole More Personal Computing business.
This was due to record engagement including the strength from third-party games and the stay-at-home guidelines related to the COVID-19 pandemic.
On top of that, we learn in the Form 8-K that Xbox hardware revenue increased 49%, primarily due to an increase in the volume of consoles sold.
Gaming is also indicating as a contributing factor to a 12% increase in gross margin for the More Personal Computing business, leading to a $532 million (15%) profit growth for the segment as a whole.
In terms of Microsoft as a whole company, the key results are as follows.
- Revenue was $143.0 billion and increased 14%
- Operating income was $53.0 billion and increased 23%
- Net income was $44.3 billion and increased 13% GAAP and 20% non-GAAP
- Diluted earnings per share was $5.76 and increased 14% GAAP and 21% non-GAAP
If you want to compare, you can check out the results from the previous quarter (from January to March) published by Microsoft in April.