Cloud Drives Second-Quarter Results for Microsoft
In its second fiscal quarter of 2023, Microsoft continued to report growth. The Redmond-based software giant reported a rise in revenue, mostly pushed by good results in cloud services.
Microsoft reported revenue of $52.7 billion, a 2% increase year-on-year. Operating income was $20.4 billion GAAP and $21.6 billion non-GAAP, and decreased 8% and 3%, respectively. Net income was $16.4 billion GAAP and $17.4 billion non-GAAP, and decreased 12% and 7%, respectively.
“The next major wave of computing is being born, as the Microsoft Cloud turns the world’s most advanced AI models into a new computing platform,” said Satya Nadella, chairman and chief executive officer of Microsoft. “We are committed to helping our customers use our platforms and tools to do more with less today and innovate for the future in the new era of AI.”
“We are focused on operational excellence as we continue to invest to drive growth. Microsoft Cloud revenue was $27.1 billion, up 22% (up 29% in constant currency) year-over-year as our commercial offerings continue to drive value for our customers,” said Amy Hood, executive vice president, and chief financial officer of Microsoft.
Revenue in Productivity and Business Processes was $17.0 billion and increased by 7% (up 13% in constant currency). Revenue in Intelligent Cloud was $21.5 billion and increased by 18% (up 24% in constant currency). Revenue in More Personal Computing was $14.2 billion and decreased 19% (down 16% in constant currency). Microsoft returned $9.7 billion to shareholders in the form of share repurchases and dividends in the second quarter of the fiscal year 2023, a decrease of 11% compared to the second quarter of the fiscal year 2022.