Revenue from Microsoft's Intelligent Cloud business segment, which includes the Azure public cloud, server products such as Windows Server, GitHub and enterprise services, totaled $14.60 billion. That's up 23% year over year and above the $13.77 billion consensus among analysts polled by FactSet.
Microsoft said Azure revenue grew 50%. Analysts had expected around 42% growth. Microsoft doesn't disclose Azure revenue in dollars. The More Personal Computing segment, containing Windows, gaming, devices and search advertising, generated $15.12 billion in revenue, which was up 14% and came in higher than the $13.47 billion FactSet consensus estimate. Technology industry research company Gartner estimated that PC shipments, excluding Chromebooks, grew 10.7% in the quarter.
The segment's operating margin narrowed to 34.5% from 40% following the introduction of two Xbox video-game consoles in November. The Productivity and Business Processes segment, including Office, Dynamics and LinkedIn, produced $13.35 billion in revenue, which was up 13% and more than the $12.89 billion consensus.