Today, Microsoft announced that it earned a net income of $18.8 billion on revenues of $51.7 billion for the quarter ending December 31, 2021. Those figures represent gains of 21 percent and 20 percent, respectively, indicating that Microsoft’s pandemic-era boom is not over yet.

“Digital technology is the most malleable resource at the world’s disposal to overcome constraints and reimagine everyday work and life,” Microsoft chairman and CEO Satya Nadella said. “As tech as a percentage of global GDP continues to increase, we are innovating and investing across diverse and growing markets, with a common underlying technology stack and an operating model that reinforces a common strategy, culture, and sense of purpose.”

Microsoft has three core businesses, Intelligent Cloud, Productivity and Business Processes, and More Personal Computing, and each experienced double-digit growth in the quarter.

Intelligent Cloud was again Microsoft’s biggest business, with $15.9 billion in revenues, a gain of 19 percent year-over-year (YOY). Azure and other cloud services revenue grew 46 percent in the quarter while server products and cloud services revenue was up 29 percent. And the Enterprise Mobility installed base grew 28 percent to over 209 million seats.

Productivity and Business Processes was Microsoft’s second-biggest business in the quarter with $18.3 billion in revenues, but it experienced the highest YOY growth, at 26 percent. Office commercial saw a revenue gain of 14 percent while Office consumer revenue was up 15 percent, with the Microsoft 365 consumer subscriber base reaching 56.4 million seats with 19 percent growth YOY.

And More Personal Computing once again brought up the rear with $17.5 billion in revenues and 15 percent growth. Windows revenues from PC makers jumped 25 percent in the quarter, Xbox content and services revenue grew 10 percent, and Surface revenue grew just 8 percent; still, that’s better than the prior two consecutive quarters when Surface revenues declined.

A few key takeaways related to the part of Microsoft I care about the most (More Personal Computing):

• Microsoft called out Surface Laptop for driving the 8 percent revenue growth in the quarter. That is fascinating since Surface Laptop is the only major Surface PC that was not updated during or just before that quarter. One has to wonder what that means for the new products.
• Gaming revenue grew 8 percent overall in the quarter, which isn’t a lot, but remember that Microsoft launched Xbox Series X|S in the year-ago quarter and inventory remains problematic. But Xbox hardware revenue was only up 4 percent.
• The 25 percent growth in Windows revenues from PC makers includes 6 points of positive impact related to Windows 11. Windows commercial products and cloud services revenue was up 13 percent.