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This article was published on April 22, 2010

Windows 7 Boosts Microsoft Profit In Most Recent Quarter

Windows 7 Boosts Microsoft Profit In Most Recent Quarter
Alex Wilhelm
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Alex Wilhelm

Alex Wilhelm is a San Francisco-based writer. You can find Alex on Twitter, and on Facebook. You can reach Alex via email at [email protected] Alex Wilhelm is a San Francisco-based writer. You can find Alex on Twitter, and on Facebook. You can reach Alex via email at [email protected]

Recent product releases are still paying dividends for Microsoft. The company just reported third quarter revenue of $14.5 billion, with $4 billion in net income.

Microsoft saw growth across the board. Revenue, at $14.5 billion, was up 6% year over year. The $4 billion reported net income was a large 35% year over year gain. This raised earnings per share to $0.45, an even higher 36% increase.

The company pointed to Windows 7 as a major factor in the successful quarter, “Windows 7 continues to be a growth engine,” Microsoft said. Although the top line was strong, large increases in profitability are in part due to “continued rigor on cost management.”

According to the Microsoft press release, some 10% of the world’s PCs are now running Windows 7, driving total Windows revenue up 28% year over year. This makes Windows 7 the fastest selling operating system of all time.

While Windows 7 was important, Microsoft “also saw strong growth in other areas like Bing search, Xbox LIVE and [their] emerging cloud services.” In short, across the board Microsoft, like Apple and others, killed it.

What is the driving force behind this great quarter for technology? It seems to be rising general demand coupled to blockbuster products that continue to impress and woo customers who might still have tight wallets.

The financial markets are closed; Microsoft shares were up an inconsequential amount on the day before the earnings were released.

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