Revenue increased $3.1 billion or 12%, driven by growth across each of our segments. Productivity and Business Processes revenue increased, driven by LinkedIn and higher revenue from Office. Intelligent Cloud revenue increased, primarily due to higher revenue from server products and cloud services. More Personal Computing revenue increased, driven by higher revenue from Gaming and Search advertising, offset in part by lower revenue from phones.
Operating income increased $774 million or 10%, primarily due to higher gross margin, offset in part by an increase in operating expenses. LinkedIn operating loss increased $69 million to $265 million, including $376 million of amortization of intangible assets. Key changes in expenses were:
• Cost of revenue increased $1.2 billion or 12%, mainly due to growth in our commercial cloud, Gaming, and LinkedIn.
• Sales and marketing expenses increased $483 million or 12%, primarily due to LinkedIn expenses and investments in commercial sales capacity, offset in part by a decrease in Windows marketing expenses.
• Research and development expenses increased $442 million or 14%, primarily due to LinkedIn expenses and investments in cloud engineering.
• General and administrative expenses increased $230 million or 26%, primarily due to the LinkedIn expenses and benefit of a legal settlement in the prior year.