Today, Microsoft released its quarterly earnings report. During the third quarter of its 2021 fiscal year, it brought in $41.7 billion in revenue, a 19% increase over last year. Operating income was $17 billion, a 31% increase, and net income was $15.5 billion GAAP and $14.8 billion non-GAAP, which is a 44% and 38% increase, respectively.

As usual, Microsoft earnings are broken up into three groups: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. Those accounted for $13.6 billion, $15.1 billion, and $13 billion in revenue, respectively, for year-over-year growth of 15%, 23%, and 19%.

Starting with Productivity and Business Processes, that included a 14% (10% constant currency) increase in revenue from Office Commercial products and cloud services. Breaking that down, Office 365 Commercial revenue is up 22% (19% CC), while products declined 25% (27% CC). On the consumer end, Office products and cloud services revenue increased by 5% (2% CC), and Microsoft 365 Consumer subscribers are now at 50.2 million.

LinkedIn revenue continues to grow, as it's up 25% (23% CC), and Microsoft says that sessions are up 29%. Dynamics products and services are up 26% (22% CC), once again driven by cloud offerings with Dynamics 365 revenue up 45% (40% CC).

And then there's the Intelligent Cloud bucket, which is now Microsoft's biggest business. Inside of that bucket is server products and cloud services, which is up 26% (23% CC), driven by Azure revenue, which is up an impressive 50% (46% CC). Server products are up 3%.

Finally, we have the More Personal Computing category, which is up 19% (16% CC) as a whole. Windows OEM revenue is up 10% thanks to the work from home demand. That's particularly impressive since last year, it was touting strong results thanks to the Windows 7 end of life. Windows OEM Pro revenue still declined 2%, but non-Pro grew by 44%.

It was also a big quarter for hardware, with a 12% (7% CC) increase in Surface revenue. Xbox revenue was big too though. Gaming as a whole increased by 50% (48% CC), and that includes a 232% (223% CC) increase in gaming hardware revenue. Naturally, that's thanks to the new Xbox Series X|S. Gaming content and services increased by 34% (32% CC).

Finally, search advertising revenue increased by 17% (14% CC). In other words, it was all-around a pretty great quarter for Microsoft.