Microsoft reported strong fiscal first quarter earnings as sales surged 22% and Azure and other cloud services sales grew 50%.
The company reported strong revenue growth across most of its product lines excluding Office commercial products as well as Surface and Xbox content and services revenue.
Microsoft reported net income of $20.5 billion with earnings of $2.71 a share. Non-GAAP earnings for the first quarter were $2.27 a share on revenue of $45.3 billion.
Wall Street was looking for first quarter revenue of $43.97 billion with earnings of $2.07 a share.
CEO Satya Nadella said technology demand would remain strong as inflation picked up because it is a “deflationary force in an inflationary economy.”
Microsoft Cloud revenue for the first quarter was $20.7 billion in revenue, up 36% from a year ago.
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By unit, Microsoft’s Productivity and Business Processes revenue was $15 billion in the first quarter with Office 365 Commercial revenue growth of 23%, LinkedIn revenue growth of 42% and Dynamics 65 revenue groth of 48%.
The Intelligent Cloud division reported revenue of $17 billion, up 31% from a year ago. More Personal Computing revenue was $13.3 bilion, up 12% from a year ago.
Other notable data points:
- Microsoft’s search and news advertising revenue excluding traffic acquisition costs grew 40%.
- Surface revenue fell 17%.
- And LinkedIn’s Marketing Solutions growth was up 61% in the first quarter compared to a year ago.
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The first quarter highlights in review:
Cloud:
Enterprise software:
Windows 11:
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