The chart above displays the net sales of Microsoft by each reportable business segment. Microsoft has divided its business into three main segments that include – Personal computing, Intelligent cloud and productivity and business processes.
In fiscal 2023, Microsoft experienced a 7% increase in its total net revenue compared to the prior year. The company experienced revenue growth in its intelligent cloud and productivity and business process segments while its revenue from the personal computing segment in 2023 declined compared to the prior year.
Microsoft experienced 17% growth in its intelligent cloud revenue in 2023 compared to 2022. Its total intelligent cloud revenue for 2023 remained $87.9 billion compared to $75 billion in the previous fiscal. The company also experienced 9% revenue growth from its productivity and business processes segments. Its revenue from the productivity and business processes segment in 2023 reached $69,274 million compared to $63,364 million in 2022. Microsoft’s personal computing revenue declined by 9% in fiscal 2023 compared to the prior year. The company generated $54,734 million from personal computing compared to $59,941 million in 2022. The total net revenue of Microsoft rose 7% to $211,915 million in 2023 compared to $198,270 million in the previous year.
2022: Intelligent cloud is the largest reportable segment based on net revenue, which generated $75.25 billion in 2022 or more than $15 billion higher compared to the prior year. Microsoft experienced growth in net sales across all the three segments in 2022 compared to the previous year. The company generated $63.36 billion from productivity and business processes and $59.65 billion from the personal computing segment.
Microsoft Revenue by Reportable Business Segments 2014-23
| Year | 2019 | 2020 | 2021 | 2022 | 2023 |
| Personal Computing | $45,698 | $48,251 | $54,093 | $59,941 | $54,734 |
| Intelligent cloud | $38,985 | $48,366 | $60,080 | $74,965 | $87,907 |
| Productivity and business processes | $41,160 | $46,398 | $53,915 | $63,364 | $69,274 |
| Total | $125,843 | $143,015 | $168,088 | $198,270 | $211,915 |
The following table shows Microsoft’s revenue by each reportable segment from 2014 to 2018.
Sums are in million dollars.
|
Segment
|
2018
|
2017
|
2016
|
2015
|
2014
|
|---|---|---|---|---|---|
|
(All sums in $millions)
|
|
|
|
|
|
| Personal Computing | $42,276 | $39,294 | $40,410 | $43,435 | $38,460 |
| INTELLIGENT CLOUD REVENUE (MN $) | $32,219 | $27,440 | $25,042 | $23,715 | $21,735 |
| Productivity & Business Processes | $35,865 | $29,870 | $25,792 | $26,430 | $26,976 |
| Corporate & Other | -338 | ||||
| Total | $110,360 | $96,571 | $91,154 | $93,580 | $86,833 |
Microsoft’s business is divided into three major reportable segments including Productivity and Business Processes, Intelligent Cloud and More Personal Computing. More personal computing is the largest reportable business segment followed by Productivity and Business Processes and Intelligent Cloud based upon revenue. More personal computing generated revenue equal to 42,276 Million dollars in 2018 followed by Productivity and Business Processes which generated revenue equal to 35,865 Million dollars. Intelligent cloud segment of Microsoft’s business generated revenue equal to 32,219 Million dollars.
About Microsoft:
Abhijeet Pratap is a passionate blogger with seven years of experience in the field. Specializing in business management and digital marketing, he has developed a keen understanding of the intricacies of these domains. Through his insightful articles, Abhijeet shares his knowledge, helping readers navigate the complexities of modern business landscapes and digital strategies.