Yesterday, Microsoft reported the financial results for the quarter ended June 30, 2023. The overall revenue was $56.2 billion (increased 8%), operating income was $24.3 billion (increased 18%), and net income was $20.1 billion (increased 20%). The results were driven by Microsoft Cloud which had a quarterly revenue of $30.3 billion, up 21% year-over-year.
The Microsoft Cloud surpassed $110 billion in annual revenue, up nearly 27%. Microsoft CEO Satya Nadella mentioned that the Azure accounted for more than 50% of the total Microsoft Cloud revenue.
Microsoft Cloud includes Azure and other cloud services, Office 365 Commercial, LinkedIn commercial solutions and Dynamics 365.
Find the segment wise highlights below.
Revenue in Productivity and Business Processes was $18.3 billion and increased 10% (up 12% in constant currency), with the following business highlights:
- Office Commercial products and cloud services revenue increased 12% (up 14% in constant currency) driven by Office 365 Commercial revenue growth of 15% (up 17% in constant currency)
- Office Consumer products and cloud services revenue increased 3% (up 6% in constant currency) and Microsoft 365 Consumer subscribers grew to 67.0 million
- LinkedIn revenue increased 5% (up 7% in constant currency)
- Dynamics products and cloud services revenue increased 19% (up 21% in constant currency) driven by Dynamics 365 revenue growth of 26% (up 28% in constant currency)
Revenue in Intelligent Cloud was $24.0 billion and increased 15% (up 17% in constant currency), with the following business highlights:
- Server products and cloud services revenue increased 17% (up 18% in constant currency) driven by Azure and other cloud services revenue growth of 26% (up 27% in constant currency)
Revenue in More Personal Computing was $13.9 billion and decreased 4% (down 3% in constant currency), with the following business highlights:
- Windows OEM revenue decreased 12%
- Devices revenue decreased 20% (down 18% in constant currency)
- Windows Commercial products and cloud services revenue increased 2% (up 3% in constant currency)
- Xbox content and services revenue increased 5% (up 6% in constant currency)
- Search and news advertising revenue excluding traffic acquisition costs increased 8%
In the past quarter, Microsoft also returned $9.7 billion to shareholders in the form of share repurchases and dividends.
