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Five Businesses: Financial Overview
Aug. 4, 2008

Microsoft reports finances in five business segments.

Client includes desktop OSs.

Business includes Office, Exchange, Dynamics, and other business software and online services.

Server and Tools includes server platform software, developer tools, and consulting and support services.

Entertainment and Devices includes Xbox, consumer hardware and software, and mobile and embedded hardware and software.

Online includes consumer online services, such as Live Search, Windows Live, and MSN; and Microsoft's platforms for online advertisers and publishers.

Other includes income and expenses, such as legal charges, human resources expenditures, and companywide marketing efforts that cannot be attributed to any one business segment.

This chart shows each business segment's estimated and actual revenues in FY'08 (which ended June 30, 2008), operating income or loss in FY'08, and estimated revenue for FY'09 as expressed at the 2008 Financial Analyst Meeting (FAM). Microsoft does not estimate operating income or loss for each business unit.

Note that the FY'08 revenue estimates have changed slightly since last year, due to changes in how Microsoft attributes revenue to each segment. This chart uses the FY'08 revenue figures reported in Microsoft's Q4'08 earnings report, combined with the percentage growth estimates given a year earlier at the 2007 FAM.

Business Segment Estimated FY'08 Revenue Actual FY'08 Revenue FY'08 Operating Income (Loss) Estimated FY'09 Revenue
Client 16,323 to 16,474 16,865 13,052 18,382 to 18,552
Business 18,206 to 18,370 18,932 12,358 21,582 to 21,772
Server and Tools 12,734 to 12,847 13,170 4,593 15,540 to 15,672
Entertainment and Devices 6,675 to 7,222 8,140 426 7,814 to 8,140
Online 2,685 to 2,758 3,214 (1,233) 3,792 to 3,857
Other N/A 99 (6,704) N/A
Total 56,800 to 57,800 60,420 22,492 67,300 to 68,100

All amounts are in millions of U.S. dollars.

          Back to associated article: Five Businesses Plan for FY'09