Microsoft's Q1 Earnings Lifted by Cloud Returns
Earnings largely beat analyst expectations.
Microsoft's fiscal-year 2024 first-quarter earnings beat analyst expectations, highlighted by cloud services returns.
In particular, Microsoft Cloud revenue was up 24 percent, year over year, according to Amy Hood, Microsoft's executive vice president and chief financial officer.
"Consistent execution by our sales teams and partners drove a strong start to the fiscal year with Microsoft Cloud revenue of $31.8 billion, up 24 percent (up 23 percent in constant currency) year-over-year," Hood said in announcing the Q1 earnings.
Highlighted results for Q1 (which ended on Sept. 30, 2023), compared with the corresponding period of the last fiscal year, included:
- Revenue was $56.5 billion and increased 13 percent (up 12 percent in constant currency)
- Operating income was $26.9 billion and increased 25 percent (up 24 percent in constant currency)
- Net income was $22.3 billion and increased 27 percent (up 26 percent in constant currency)
- Diluted earnings per share was $2.99 and increased 27 percent (up 26 percent in constant currency)
CEO Satya Nadella also attributed the company's embrace of AI-powered assistants, dubbed "Copilots," to the positive quarterly results.
"With copilots, we are making the age of AI real for people and businesses everywhere," Nadella said. "We are rapidly infusing AI across every layer of the tech stack and for every role and business process to drive productivity gains for our customers."
Nadella and Hood took part in a conference call with other execs. It's available for replay here.
David Ramel is an editor and writer for Converge360.