everyone. good Thank you, Satya, and afternoon,
a as results integration across from of inclusive accounting, our GitHub, comments impact outlook and reminder, and expenses. purchase my the First, transaction-related include
was quarter, and billion, dollars constant and XX% per TCJA. execution XX%. income line to demand $XX.X in share $X.XX, Strong top constant related Gross for another quarter revenue the of cloud increasing for XX% This and offerings XX% net XX% increased drove double-digit earnings customer hybrid charges up continued in margin bottom our currency when and increased growth. adjusting was Operating currency. and XX%,
longer-term Western We to in our bookings currency solid weaker a the and expectations. and an the macroeconomic were Africa. benefit and trends favorable and geographic offset and In number line with Central annuity the execution revenue our East and constant to was growing unearned trends points by our growing U.K. by X perspective, performance of billion, XX% slightly And driven the secular in spending conditions. and Eastern commercial strong, partially year-over-year continued grew business, contracts. From Europe in performance mix strength U.S., $XX.X with Azure across from XX%. larger, Middle IT in Commercial increase above XX% was commercial renewal XX%, Europe
contracts billion, strong reminder, growth a revenue. Azure but will gross have year-over-year margin. currency. drive As consumption performance XX% margin driven Commercial points cloud in a and larger increased revenue contracts, cloud on $X impact improvement pay-as-you-go and limited Azure was Azure XX% XX% gross Commercial percentage unearned long-term in bookings by constant to in-period in revenue growing significant overages will and X
year-over-year impact offset percentage stronger mix Our company gross and improving sales The Surface commercial hardware. as cloud were which our revenue, margin to was and dollar COGS in We margins areas. shift operating flat some expectation of improving grew operating X%, XX%, slightly a cloud U.S. spend by margins results. Operating FX greater by shifted resulted to to focused reduced was bit solid than point. anticipated, gross investment, than expense margins expenses lower less and a as slightly than QX. expanded marketing as product X key execution result again in growth a
customer increasing XX% increased Office was Productivity and XXX. Office of segment growth Commercial $XX.X ARPU We installed seat constant segments. EX below base and and saw in growth Office our to value X% expansion across grew continued Consumer and all EX revenue Commercial XX% XX%. currency XX% billion, Dynamics by results. constant driven revenue in Processes expectation. driven XXX and X% XXX Commercial, and LinkedIn XX% from currency, migration grew revenue workloads from by higher to Business Revenue and offerings. Now Office customer
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was than finance infrastructure higher lower investment $X.X driven leases, originally equipment. driven remeasurement. was mainly cloud for and was equipment million, variability property the Capital expense by flow partially $X.X of anticipated, and plant, interest quarter-to-quarter to decreased company higher strong Cash income Cash build-out. $XXX billion, by from losses for by of and currency gains expenditures, on interest were including billings and cash timing back paid cloud increased and and Now year-over-year collections. to $X.X foreign and planned year-over-year, X% Free results. to plant, than cash billion Other billion. XX% sequentially operations the flow due down reflecting property payments offset net income timing total
we dividends, effective rate with billion expectations. shareholders $X.X tax to And XX%. increase repurchases of and above non-GAAP Our in was through an line finally, returned slightly share XX%,
of issued was repurchase share aligned $X.X higher of QX the the quarterly end stock to year. our the pace Our GitHub consideration buyback fully incremental fiscal transaction our normal billion, than offset to in by commitment and
Now let's to outlook. move the
QX, first, For FX.
current FX approximately the by With X the growth we stable, stronger COGS point. revenue expense and by decrease X U.S. to now operating approximately decrease dollar and rates points growth and assuming remain expect
X With and Computing. about Productivity revenue the segments, Intelligent point X Business and More anticipate in and points of on and we Cloud FX negative impact Processes growth Personal
annuity in Commercial sequentially bookings approximately another mix continued healthy strong to increasing revenue expected with X% business. drive should Commercial in Second, customer line demand, is to and growth solid unearned our revenue X%, decline quarter trends. historic
We as margin revenue expect material gross continue improve partially gross the be offset margin of percentage by mix Azure services. in toward to improvement year-over-year consumption-based will commercial cloud Azure again to
CapEx. Third,
increase We dollar increasing to as expenditures sequential expect continue invest capital support demand. a to we in
growth segment $XX.X Office Now year as Productivity we well and between LinkedIn billion, in guidance. Business comparable. Processes, and and on prior double-digit expect revenue growth by a $X.X as to Dynamics strong healthy driven Commercial billion In
expect in Office of growth consumer XXX will the digits to low the be be by We the continuation Office growth Consumer continue offset as single market revenue in partially headwinds. to PC
$X.XX billion $XX.XX growth overall, billion, our our OEM impact QX. strong hybrid with TAC, with another to should expect shift $XX.XX businesses In the we continued server Surface. to and businesses. services In Computing, drive balance growth mix Surface, growth gaming, supply be continuing expect cloud demand a in Cloud, in revenue Laptop to and revenue as and Go billion, revenue Windows Azure $X.XX single between XX% in Surface will market growth in will billion and we reflect of continue where and strong revenue growth demand similar growth we we products our the momentum mix expect our moderating low in gaming ex Intelligent drive business. revenue Surface to Pro between growth be More healthy Personal we for per-user between In revenue Surface market services. consumption-based growth. shift For to X expect chip to continued than higher Sales and expect digits search Surface -- last strong quarter. and In from constrained software X, over slightly quarter QX. anticipate in from In will we growth
back Now to overall company guidance.
tax We expect COGS be to QX. of approximately marketing we XX%. expense. spend dollars, of interest offset of $XX income line million $XX.XX should as billion inclusive $XX.X moved full operating with And QX and interest our effective is partially billion to the expenses $XX.XX in that finally, expect QX billion of year from be and Other $XX.X income billion by to to expense rate rate
few QX which a year, comments are Now on from our and unchanged outlook full for October. fiscal the
COGS operating remain rates stable, revenue expect FX In growth by approximately points X by and assuming point. decrease to and growth FX. QX, expense we X on First approximately
in we strong as server, and in Second, in year, expect specifically the continued the Windows also a strength challenging have comparisons but title LinkedIn, QX, a we of business; in on-premise cloud third-party OEM reminder, our commercial prior performance from gaming. several
roughly X%. to year of operating continue terms growth full In expect of we expenses,
be significant still to the We GitHub. year margin will full like and growth opportunities, in competitive Teams operating Power growing Dynamics, to given areas growth continue our up expect the slightly GAAP momentum. and Azure, We content GitHub, advantage of impact full platform, strategic year-over-year, of inclusive invest gaming LinkedIn,
issued effective With And stock still be full variability. to the rate we Mike, committed For quarterly high for that, CapEx, consideration incremental our buyback to the the by Q&A. that the XX% go we pace meet moderate, expect the finally, We share normal fiscal year of for to cloud rate transaction demand the beyond tax expect even services. growth GitHub in roughly continue as let's fully offset end remain to we with to year the will the quarterly an year.
