Microsoft’s (MSFT) cloud business is booming, but its PC business has ground to recover. In the quarter ended June 30, Azure and other cloud services revenue jumped 43%, helping push total revenue to $90 billion, up 18% from a year earlier. Windows OEM and Devices revenue, however, fell 7%. That contrast makes the next Windows and Surface announcements worth watching for signs of stronger customer demand.
Microsoft will share its latest Windows and Surface news tomorrow, Oct. 7, at 10 a.m. Pacific time. The event is expected to take place in San Francisco, with CEO Satya Nadella, Windows and Devices chief Pavan Davuluri, and Nvidia (NVDA) CEO Jensen Huang discussing local AI. This expected focus includes the RTX Spark platform, Surface hardware, and Windows experiences designed to run AI directly on devices.