In the third quarter of fiscal year 2019, which ran until March 31, 2019, Microsoft's revenue was $ 30.6 billion, up 14 percent year on year. Operating revenues increased by 25 percent to $ 10.3 billion. Net income increased by 19 percent to $ 8.8 billion, and earnings per share increased by 20 percent to $ 1
Microsoft has three reporting segments: Productivity and business processes (covering Office, Exchange, SharePoint, Skype, Dynamics and LinkedIn), Intelligent Cloud (including Azure, Windows Server, SQL Server, Visual Studio and Enterprise Services) and more personal computing ( covers Windows, hardware and Xbox, as well as search and advertising).  Productivity group revenue increased by 14 percent to $ 10.2 billion, with revenues of 28 percent to $ 4.0 billion. There is no standout in the division, but rather strong growth throughout the division; Commercial office products and service revenues increased by 12 per cent, consumer income increased by 8 per cent, Dynamics revenue increased by 13 per cent, with Dynamics 365 revenue growth by 43 per cent, and LinkedIn revenues increased by 27 per cent. The number of commercial Office 365 seats is up 27 percent, with more than 180 million monthly active users, and consumer Office 365 subscribers increased by 12 percent to 34.2 million. The transition to the cloud continues to shift where Microsoft makes its money: while commercial Office 365 revenue increased by 30 percent, concentrated Office revenue fell by 19 percent.
Intelligent cloud revenue increased by 22 percent to $ 9.7 billion, with revenues growing 21 percent to $ 3.2 billion. As always, there is more murkiness around these numbers than we want, with Microsoft still choosing not to give a hard dollar figure for Azure. Total server product and cloud service revenue was up 27 percent, with Azure up 73 percent and server products up 7 percent. This growth in server products was partly driven by the impending lifetime of Windows Server 2008 and SQL Server 2008. The installed base for Enterprise Mobility grew 53 percent to more than 100 million seats now managed through the service. Enterprise Services revenue increased by 4 percent.
And now for the more surprising result
More personal information was 8 percent to $ 10.7 billion, and revenue increased by 25 percent to $ 3.2 billion. Windows OEM Pro revenue increased by 15 percent, which Microsoft assigns a mix of demand demand from the previous quarter, was eventually met due to greater availability of Intel processors and higher than expected demand for commercial systems. OEM non-Pro revenues were down 1 percent, although this is still ahead of the broader PC market, again thanks to fulfilling demand from previous quarters due to chip shortages. Windows subscriptions and service revenue increased by 18 percent.
Surface revenues also grew 21 percent to $ 1.3 billion. Total gaming revenue increased by 5 percent to $ 2.4 billion, with increased software and revenue growth services by 12 percent more than compensating for a decline in hardware revenue. The number of Xbox Live monthly active users is also up 7 percent, to 63 million. Search income increased by 12 percent.
Gartner and IDC both noted that the company's hardware update powered by the imminent lifetime of Windows 7 is starting to decline. This replacement cycle has encouraged the revenue of Windows Commercial and OEM Pro for the last few quarters. Expectation is that this will soon come to an end, but the Intel chip shortages are without a doubt what makes the upgrade process take longer than it otherwise could have been.