Citing robust growth in cloud services, Microsoft reported Q1 revenue of $61.9 billion, up 17% compared to last year. Net income was $21.9 billion, up 20%, and diluted earnings per share was $2.94, up 20%.
"Microsoft Copilot and Copilot stack are orchestrating a new era of AI transformation, driving better business outcomes across every role and industry,” said Satya Nadella, chairman and chief executive officer of Microsoft.
“This quarter Microsoft Cloud revenue was $35.1 billion, up 23% year-over-year, driven by strong execution by our sales teams and partners,” said Amy Hood, executive vice president and chief financial officer of Microsoft.
Highlights
Revenue in Productivity and Business Processes was $19.6 billion and increased 12% (up 11% in constant currency), with the following business highlights:
- Office Commercial products and cloud services revenue increased 13% (up 12% in constant currency) driven by Office 365 Commercial revenue growth of 15%
- Office Consumer products and cloud services revenue increased 4% and Microsoft 365 Consumer subscribers grew to 80.8 million
- LinkedIn revenue increased 10% (up 9% in constant currency)
- Dynamics products and cloud services revenue increased 19% (up 17% in constant currency) driven by Dynamics 365 revenue growth of 23% (up 22% in constant currency)
Revenue in Intelligent Cloud was $26.7 billion and increased 21%, with the following business highlights:
- Server products and cloud services revenue increased 24% driven by Azure and other cloud services revenue growth of 31%
Revenue in More Personal Computing was $15.6 billion and increased 17%, with the following business highlights:
- Windows revenue increased 11% with Windows OEM revenue growth of 11% and Windows Commercial products and cloud services revenue growth of 13% (up 12% in constant currency)
- Devices revenue decreased 17% (down 16% in constant currency)
- Xbox content and services revenue increased 62% (up 61% in constant currency) driven by 61 points of net impact from the Activision acquisition
- Search and news advertising revenue excluding traffic acquisition costs increased 12%
