Microsoft released its third quarter (Q3) earnings earlier today for fiscal year 2014 (FY14). This is the first quarter under new CEO Satya Nadella. The earnings report contained a number of interesting pieces of information including how the Surface business is doing. Microsoft has been relatively quiet about the Surface business since it had to do a $900 million write-off last year.
Compared to last year Surface revenue is up 50% to $494 million. Microsoft also stated they are seeing an increasing mix of second generation (Surface 2) and Surface Pro 2 devices. It appears Microsoft’s investment into tablet hardware is starting to pay off and the Surface may be another multi-billion dollar business for Microsoft next year.