Once again, Microsoft's cloud business is trucking along nicely, growing 27 percent over last year to reach revenues of $10.8 billion, according to its Q1 2020 earnings report. That's been a common refrain for the company for the past few years, but now it's also seeing consistent growth in LinkedIn, which saw a revenue jump of 25 percent from a year ago. The only notable blip in an otherwise stellar earnings report is Surface sales, which fell 4 percent from a year ago. That makes plenty of sense, since potential buyers were likely waiting for the arrival of new computers this fall.
Overall, Microsoft reported revenues of $33.1 billion during the quarter, a 14 percent increase over last year, and net income growth of 21 percent. Xbox sales remained steady, after seeing a minor drop during the previous quarter, which is good news for the company as we wait for its next generation consoles. It'll be interesting to see how its holiday quarter fares, as it'll be reporting sales from the latest batch of Surface devices, and we expect to see plenty of Xbox sales coming soon.