Microsoft posted the third quarter of its 2021 financial results today, reporting revenue of $41.7 billion and a net income of $15.5 billion. Revenue is up 19 percent, and net income has increased by 44 percent. Once again, Microsoft has seen strong growth for Surface, Xbox, and cloud-related services.
The PC market isnt slowing down, despite a global chip shortage, and Microsoft is benefiting from this once again. Windows OEM revenue has grown by 10 percent, reflecting the strong consumer PC demand. Windows non-pro OEM revenue also grew 44 percent, and only Windows OEM Pro revenue declined by 2 percent.
Surface hit a $2 billion business milestone in the previous quarter, and Microsoft has recorded $1.5 billion of revenue in Q3. That may look like a dip, but its actually up 12 percent year over year during whats usually a more quiet quarter for Surface sales.
While Microsoft just unveiled its new Surface Laptop 4 and accessories earlier this month, the Surface Pro 7 Plus also debuted for businesses and schools during this recent quarter. The Surface Pro is Microsofts most popular Surface device, and this latest model includes a bigger battery, Intels 11th Gen processors, a removable SSD, and LTE.
Microsoft is also home to Xbox hardware and games, and once again revenue has grown across gaming. This is the second quarter of sales of Microsofts Xbox Series X and Series S consoles, and hardware revenue has grown by a massive 232 percent thanks to these next-gen consoles.
Xbox content and services revenue has also increased by 34 percent compared to the same quarter last year. Gaming became a key hobby for many during 2020, and that trend has remained throughout 2021. Microsofts overall gaming revenue is up 50 percent, after reaching $5 billion for the first quarter ever last quarter.