Revenue from its More Personal Computing division increased 1% in FY16 Q3 due largely to search advertising. Gross margin dollars increased 2% (up 6% CC) due to search and Surface (which had a significant impact on the quarterly reports).
Even with the increase of 18%, we can see a pattern trickling down from last fiscal year’s reports. We’ll be keeping an eye on things going forward to see if Microsoft can continue growing in the lucrative search advertising business.