Microsoft posts $56.5bn revenue for Q3 2023, up by 13% YoY

Microsoft Corp. has released its financial performance for the quarter ending September 30, 2023, showcasing a revenue of $56.5 billion. This marks an increase of 13% when juxtaposed with the same period from the preceding fiscal year. The technology giant’s operating income experienced a 25% surge, hitting $26.9 billion, while the net income amounted to $22.3 billion, reflecting a 27% ascent. The quarter’s diluted earnings per share stood at $2.99, which also exhibited a 27% growth.

Highlighting Microsoft’s Sector-wise Growth

Productivity and Business Processes: $18.6 Billion Revenue

The revenue from Productivity and Business Processes reached $18.6 billion, growing by 13%. Key developments in this sector include:

• Office Commercial: A 15% growth led by Office 365 Commercial revenue that increased by 18%.
• Office Consumer: 3% growth coupled with Microsoft 365 Consumer subscribers now tallying 76.7 million.
• LinkedIn: An 8% growth in revenue.
• Dynamics Products: 22% growth anchored by Dynamics 365 revenue that rose by 28%.

Microsoft Q3 2023 Results: Revenue surges with $56.5 billion, cloud services shine. Photo courtesy of efes from Pixabay.

Intelligent Cloud: Earnings Touched $24.3 Billion

The Intelligent Cloud segment raked in $24.3 billion, indicating a 19% increase. The primary boosters for this segment were:

• Server Products & Cloud Services: A 21% growth, with Azure and other cloud services witnessing a 29% increase in revenue.

More Personal Computing: $13.7 Billion in Revenue

More Personal Computing reported a revenue of $13.7 billion, growing by 3%. The sector’s growth drivers include:

• Windows: A 5% hike in revenue, with Windows OEM revenue and Windows Commercial products both seeing growth rates of 4% and 8% respectively.
• Devices: A decline of 22% in revenue.
• Xbox: 13% growth in content and services revenue.
• Search and News Advertising: A revenue uptick of 10%.

Satya Nadella, chairman and CEO of Microsoft, emphasized the company’s strides in AI, stating: “With copilots, we are making the age of AI real for people and businesses everywhere.”

Amy Hood, Microsoft’s CFO, pinpointed: “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% year-over-year.”

Lastly, Microsoft earmarked $9.1 billion for shareholders through share buybacks and dividends in Q1 of fiscal 2024.