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Windows, Surface and phones post revenue declines as Microsoft's MPC segment falls 17 percent

Gregg Keizer | Oct. 26, 2015
Hardware and OS anchor turns into dead weight that drags down growth in cloud business.

Company-wide, Microsoft's September quarter was mixed, with revenue down more than 12% year-over-year, but with profits up 2%. Most financial analysts tapped the 8% growth (up 14% in constant currencies) in Microsoft's Intelligent Cloud segment, the group that blends the Windows server licensing business, enterprise services and Microsoft's Azure cloud platform, as the biggest positive news.

Intelligent Cloud's operating income was a robust 42% of its revenue, second only to the Productivity and Business Processes group, which covers Microsoft's Office business.

Investors seized on Microsoft's results, notably the continued growth in the cloud, to push the Redmond, Wash. company's share price up more than 11% in trading as of 3 p.m. ET Friday.


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