Microsoft exceeds Q3 2019 estimates, revenue growth edges down for Azure, Dynamics 365

Microsoft announced third quarter of fiscal 2019 revenue of $30.6 billion, up 14% from 2018 and beating analyst estimates. The company also reported earnings per share of $1.14, also above market expectations.

Revenue in Productivity and Business Processes was $10.2 billion and increased 14%. Dynamics products and cloud services revenue increased 13%, driven by Dynamics 365 revenue growth of 43% (up 44% in constant currency). By contrast, Dynamics 365 growth in Q3 2018 was 65% and grew 51% in Q2 2019.

LinkedIn revenue increased 27%, with Microsoft noting higher engagement via session growth of 24%.

The Intelligent Cloud segment overall delivered $9.7 billion, up 22% year-over-year. Azure revenue grew 73% as compared to 93% in Q3 2018 and 76% in Q2 2019.

“Demand for our cloud offerings drove commercial cloud revenue to $9.6 billion this quarter, up 41% year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft. “We continue to drive growth in revenue and operating income with consistent execution from our sales teams and partners and targeted strategic investments.”

The More Personal Computing segment revenue was $10.7 billion and increased 8%. Highlights included 18% growth in Windows Commercial product revenue and 21% increase in Surface revenue.