Microsoft’s Q3 earnings show steady Office gains, sharp drop in Surface revenue

2 min. read

Published onApril 27, 2017

published onApril 27, 2017

Share this article

Read our disclosure page to find out how can you help Windows Report sustain the editorial teamRead more

The earnings are in for Quarter 3 of fiscal year 2017, offering investors and fans alike a look at how things are going for Microsoft as they move forward with their business plans.There are some ups and downs this quarter, with Office and gaming revenue on the rise and Surface revenue taking a considerable dip.

Here’s a look at the highlights:

· Windows OEM revenue increased 5% (up 5% in constant currency)· Windows commercial products and cloud services revenue increased 6% (up 6% in constant currency)· Surface revenue decreased 26% (down 25% in constant currency)· Search advertising revenue excluding traffic acquisition costs increased 8% (up 9% in constant currency)· Gaming revenue increased 4% (up 6% in constant currency)

Increases from ad revenue, gaming, cloud services, and OEM revenue all show signs of gradual improvement. On the other hand, a sharp drop in revenue hit the Surface line, tanking numbers down 26%. That’s a pretty huge loss of revenue for any one period of time, and might prove as some reasonable cause for alarm for investors looking at the hardware as possible inroad into the company encroaching Apple-like territory. That being said, it may also be a by-product of the fact that we haven’t had a big announcement regarding the Surface Pro line in quite a while.

The Q3 earnings report leaves investors with a split impression, with numbers doing exceptionally well for everything besides Surface products. We’ll be getting a better idea of how things shake out as investors take the time to digest some of the information in the Q3 report.

Radu Tyrsina

Radu Tyrsina has been a Windows fan ever since he got his first PC, a Pentium III (a monster at that time).

For most of the kids of his age, the Internet was an amazing way to play and communicate with others, but he was deeply impressed by the flow of information and how easily you can find anything on the web.

Prior to founding Windows Report, this particular curiosity about digital content enabled him to grow a number of sites that helped hundreds of millions reach faster the answer they’re looking for.

User forum

0 messages

Sort by:LatestOldestMost Votes

Comment*

Name*

Email*

Commenting as.Not you?

Save information for future comments

Comment

Radu Tyrsina

With KB5043178 to Release Preview Channel, Microsoft advises Windows 11 users to plug in when the battery is low#

Copilot in Outlook will generate personalized themes for you to customize the app#

Microsoft will raise the price of its 365 Suite to include AI capabilities#

Death Stranding Director’s Cut is now Xbox X|S at a huge discount#

Outlook will let users create custom account icons so they can tell their accounts apart easier#

Microsoft’s Q3 earnings show steady Office gains, sharp drop in Surface revenue#

With KB5043178 to Release Preview Channel, Microsoft advises Windows 11 users to plug in when the battery is low

Copilot in Outlook will generate personalized themes for you to customize the app

Microsoft will raise the price of its 365 Suite to include AI capabilities

Death Stranding Director’s Cut is now Xbox X|S at a huge discount

Outlook will let users create custom account icons so they can tell their accounts apart easier

Microsoft’s Q3 earnings show steady Office gains, sharp drop in Surface revenue