Microsoft Cloud Strength Drives Fourth Quarter Results
Microsoft Corp. announced the following results for the
quarter ended June 30, 2023, as compared to the corresponding period of last
fiscal year:
· Revenue was $56.2 billion and
increased 8% (up 10% in constant currency)
· Operating income was $24.3
billion and increased 18% (up 21% in constant currency)
· Net income was $20.1 billion and
increased 20% (up 23% in constant currency)
· Diluted earnings per share
was $2.69 and increased 21% (up 23% in constant currency)
“Organizations are asking not
only how – but how fast – they can apply this next generation of AI to address
the biggest opportunities and challenges they face – safely and responsibly,”
said Satya Nadella, chairman and chief executive officer of Microsoft. “We
remain focused on leading the new AI platform shift, helping customers use the
Microsoft Cloud to get the most value out of their digital spend, and driving
operating leverage.”
“We delivered a solid close to
the fiscal year driven by Microsoft Cloud quarterly revenue of $30.3 billion,
up 21% (up 23% in constant currency) year-over-year,” said Amy Hood, executive
vice president and chief financial officer of Microsoft.
Business Highlights
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%
Microsoft returned $9.7 billion
to shareholders in the form of share repurchases and dividends in the fourth
quarter of fiscal year 2023.
Fiscal Year 2023 Results
Microsoft Corp. announced
the following results for the fiscal year ended June 30, 2023, as compared to
the corresponding period of last fiscal year:
· Revenue was $211.9 billion and
increased 7% (up 11% in constant currency)
· Operating income was $88.5
billion GAAP and increased 6%, and $89.7 billion non-GAAP and increased 8% (up
14% in constant currency)
· Net income was $72.4 billion GAAP
and decreased slightly, and $73.3 billion non-GAAP and increased 6% (up 11% in
constant currency)
· Diluted earnings per share was
$9.68 GAAP and increased slightly, and $9.81 non-GAAP and increased 7% (up 12%
in constant currency)
· GAAP results include the Q2
charge, a $1.2 billion negative impact to operating income, explained in the
Non-GAAP Definition section below
The following table reconciles
our financial results for the fiscal year ended June 30, 2023, reported in
accordance with generally accepted accounting principles (GAAP) to non-GAAP
financial results. Additional information regarding our non-GAAP definition is
provided below. All growth comparisons relate to the corresponding period in
the last fiscal year.
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