Microsoft posted the fourth quarter of its 2019 financial results today, reporting revenue of $33.7 billion and net income of $13.2 billion. Both are big increases year-over-year, setting a new record fiscal year for Microsoft. The results also come as Microsoft continues to be valued as a $1 trillion company thanks to the company’s market cap. Microsoft first passed the $1 trillion milestone in this quarter, thanks to its continued growth in cloud and diverse businesses.
As it has in past quarters, the company saw its Intelligent Cloud segment grow the most (19 percent), netting $11.4 billion over last quarter’s $9.2 billion. The Productivity and Business Processes segment jumped 14 percent over last quarter, while the Personal Computing side of things rose 4 percent to make $11.3 billion. Under this umbrella though, gaming revenue declined 10 percent compared to the same quarter last year, with Xbox software and services revenue dropping 3 percent.
Once again, that’s not surprising since the company hasn’t launched a new console in ages and is expected to unveil a next-gen Xbox next year. The company’s also prepared some big games to launch alongside the console, and (partially) releasing a cloud-based game streaming service this October, so this slowdown in Xbox revenue isn’t likely to remain for long.
