Editing Microsoft Corporation (section)

=== Financial Performance: Strengths and Challenges   ===
Microsoft’s 2015 financial results reflected both its strengths and the challenges it faced during its strategic pivot towards cloud computing and enterprise services. The company reported total revenue of $93.6 billion <ref>{{cite web |url=https://www.microsoft.com/investor/reports/ar15/index.html |quote=Microsoft's revenue for 2015 was $93.6 billion. }}</ref>, with a gross margin of $60.5 billion and an operating income of $18.2 billion. However, a net income of $12.2 billion <ref>{{cite web |url=https://www.microsoft.com/investor/reports/ar15/index.html |quote=Microsoft's net income for 2015 was $12.2 billion. }}</ref> was overshadowed by a significant $7.5 billion non-cash charge related to its Phone Hardware segment <ref>{{cite web |url=https://www.microsoft.com/en-us/investor/earnings/fy-2015-q4/press-release-webcast |quote=Microsoft took a $7.5 billion non-cash charge related to its Phone Hardware segment in 2015. }}</ref>, which included goodwill and asset impairment charges. This charge, stemming from the acquisition of Nokia’s smartphone business, contributed to a $10 billion reduction in operating and net income for the fiscal year.  

Despite this setback, Microsoft’s cloud computing business emerged as a standout performer. Azure’s revenue and compute usage grew by over 100% in the fourth quarter of 2015 <ref>{{cite web |url=https://www.microsoft.com/investor/reports/ar15/index.html |quote=Azure cloud platform revenue and compute usage increased by over 100% in the fourth quarter of 2015 year over year. }}</ref>, while Office 365 saw consumer subscriptions surpass 15 million and commercial seats increase by 74% <ref>{{cite web |url=https://www.microsoft.com/investor/reports/ar15/index.html |quote=Office 365 consumer subscriptions grew to more than 15 million in 2015. }}</ref>. The Productivity and Business Processes segment, which includes Office 365, generated $28.3 billion in revenue, marking a 12% year-over-year increase <ref>{{cite web |url=https://www.forbes.com/sites/gurufocus/2025/01/16/microsoft-is-riding-the-wave-to-long-term-growth-through-ai-and-cloud/ |quote=Microsoft's Productivity and Business Processes segment generated $28.3 billion in revenue, up 12%. }}</ref>. These achievements underscored Microsoft’s competitive positioning in the tech industry, particularly in cloud computing and enterprise IT, where it continued to challenge rivals like Amazon Web Services and Google Cloud.