Cloud Strength Drives Microsoft’s Quarter Results

In the first quarter of the financial year 2023, which ended September 30, Microsoft posted solid results. Revenue and operating profit grew, while net income recorded a negative impact.

Revenue in the period rose 11% (16% in constant currency) to $50.1 billion. Operating income was $21.5 billion and increased by 6% (15% in constant currency). Net income and EPS, however, went into negative territory. Profit was down 14% year-over-year (8% in constant currency) to $17.6 billion, as diluted earnings per share went down 13% (7% in constant currency) to $2.35.

“In a world facing increasing headwinds, digital technology is the ultimate tailwind,“ said Satya Nadella, chairman and CEO of Microsoft. “In this environment, we’re focused on helping our customers do more with less while investing in secular growth areas and managing our cost structure in a disciplined way.“

“This quarter Microsoft Cloud revenue was $25.7 billion, up 24% (up 31% in constant currency) year-over-year. We continue to see healthy demand across our commercial businesses including another quarter of solid bookings as we deliver compelling value for customers,“ said Amy Hood, EVP, and CFO of Microsoft.

Revenue in Productivity and Business Processes was $16.5 billion and increased by 9% (up 15% in constant currency). Intelligent Cloud saw $20.3 billion in revenue, an increase of 20% (up 26% in constant currency). Revenue in More Personal Computing was $13.3 billion and decreased slightly (up 3% in constant currency).