Microsoft’s Q4 2023 results
Microsoft’s Q4 2023 results show a mixed bag, with revenue growth in most areas, but personal computing hit hard by layoffs, a strategic pivot, and disruption from the cloud. The company’s cloud, AI, and gaming businesses are powering ahead, but Windows, Office, and Surface show marked declines.
Overall, revenue sources outside of personal computing increased by an average of 14%. Cloud computing and AI were the biggest growth areas, with 19% and 26% increases respectively. Windows OEM revenue and devices revenue both fell, reflecting a contraction in the hardware sector overall, with Xbox Content and Services seeing a 5% revenue increase, and advertising revenue also growing by 8%.
Microsoft’s shift towards “deviceless services” like Xbox Game Pass and Windows commercial services is paying off, but the company will likely be looking to diversify its Windows revenue streams further in the future.
The overall results come after a strategic pivot that included significant layoffs, which likely contributed to the revenue and net income increase. However, it’s important to note that the figures are still lower than in previous years, while the company’s ongoing focus on cloud, AI, and gaming will likely yield results, but is not a one-size-fits-all solution.
Microsoft Q4 2023 revenue breakdown
Here is a breakdown of Microsoft’s Q4 2023 revenue (non-GAAP figures):
| Revenue Source | Revenue Increase |
|---|---|
| Cloud Computing | 19% |
| AI | 26% |
If you want to get ahead of the competition, our guide to the best Windows Server 2023 features will help you do just that. You can also learn what Microsoft’s acquisition of GitHub means for your business, and how to keep your data safe when using 5G networks.
