Today, Microsoft reported the financial results for the quarter ended March 31, 2023. The revenue was $52.9 billion and increased 7%, operating income was $22.4 billion and increased 10%, and Net income was $18.3 billion and increased 9%. After the market hours, Microsoft’s share price increased nearly 8.51%. It will be interesting to see if it can sustain the same when the market opens tomorrow.
Microsoft’s results were driven by strong cloud services growth partially offset by declining hardware sales which include Surface, Xbox and Windows OEM (PCs).
Revenue in Productivity and Business Processes was $17.5 billion and increased 11% (up 15% in constant currency), with the following business highlights:
- Office Commercial products and cloud services revenue increased 13% (up 17% in constant currency) driven by Office 365 Commercial revenue growth of 14% (up 18% in constant currency)
- Office Consumer products and cloud services revenue increased 1% (up 4% in constant currency) and Microsoft 365 Consumer subscribers grew to 65.4 million
- LinkedIn revenue increased 8% (up 10% in constant currency)
- Dynamics products and cloud services revenue increased 17% (up 21% in constant currency) driven by Dynamics 365 revenue growth of 25% (up 29% in constant currency)
Revenue in Intelligent Cloud was $22.1 billion and increased 16% (up 19% in constant currency), with the following business highlights:
- Server products and cloud services revenue increased 17% (up 21% in constant currency) driven by Azure and other cloud services revenue growth of 27% (up 31% in constant currency)
Revenue in More Personal Computing was $13.3 billion and decreased 9% (down 7% in constant currency), with the following business highlights:
- Windows OEM revenue decreased 28%
- Devices revenue decreased 30% (down 26% in constant currency)
- Windows Commercial products and cloud services revenue increased 14% (up 18% in constant currency)
- Xbox content and services revenue increased 3% (up 5% in constant currency)
- Search and news advertising revenue excluding traffic acquisition costs increased 10% (up 13% in constant currency)
“Focused execution by our sales teams and partners in this dynamic environment resulted in Microsoft Cloud revenue of $28.5 billion, up 22% (up 25% in constant currency) year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.
