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Microsoft Corp.

Microsoft Corp Reports Strong Q1 Earnings, but Azure Revenue Growth Fails to Meet Expectations

Strategic Insights

— 1 min read

Microsoft Corp posted stronger-than-expected first-quarter earnings, driven by growth in cloud and AI services. The company reported $77.7 billion in revenue, up 18% from the year-ago period, and a GAAP earnings per share of $3.72, beating analyst estimates. However, shares fell in after-hours trading as investors were disappointed by the slower-than-expected growth in Azure revenue, which rose 40% year-over-year, slightly below Wall Street expectations. Microsoft Cloud generated $49.1 billion in revenue, up 26% from last year.

Key Takeaways:

  • Microsoft Corp reported $77.7 billion in revenue, up 18% from last year, and beating analyst estimates of $75.3 billion.
  • The company's GAAP earnings per share rose 13% to $3.72, exceeding the street's forecast of $3.67.
  • Azure revenue grew 40% year-over-year, slightly below Wall Street expectations, despite strong overall results.
  • Microsoft Cloud generated $49.1 billion in revenue, up 26% from last year.
  • Productivity and Business Processes revenue, including Microsoft 365, rose 17% to $33.3 billion.
  • Commercial cloud subscriptions for Microsoft 365 climbed 17%, while consumer cloud subscriptions jumped 26%.
  • LinkedIn revenue increased 10% and Dynamics 365 revenue grew 18%.
  • The More Personal Computing segment, which includes Windows, Surface devices, and gaming, generated $13.8 billion, up 4% from last year.

Statistics:

  • Revenue: $77.7 billion (up 18% from last year)
  • GAAP earnings per share: $3.72 (up 13% from last year)
  • Azure revenue growth: 40% year-over-year, slightly below Wall Street expectations
  • Microsoft Cloud revenue: $49.1 billion (up 26% from last year)
  • Productivity and Business Processes revenue: $33.3 billion (up 17% from last year)
  • Commercial cloud subscriptions for Microsoft 365: up 17%
  • Consumer cloud subscriptions: up 26%
  • LinkedIn revenue growth: 10%
  • Dynamics 365 revenue growth: 18%
  • More Personal Computing segment revenue: $13.8 billion (up 4% from last year)

Sources:

  • Microsoft Corp's Q1 earnings release, as reported on Microsoft's official website
  • Bloomberg News, "Microsoft Quarterly Earnings Report"

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