Microsoft reports 17% jump in FY24 Q3 total revenue to $62bn

Microsoft Corp. has announced impressive results for the quarter ending March 31, 2024, showcasing substantial growth across its diverse portfolio. The company reported a total revenue of $61.9 billion, marking a 17% increase from the previous year. Key financial highlights include:

– Operating income: $27.6 billion, up 23%

– Net income: $21.9 billion, up 20%

– Diluted earnings per share: $2.94, up 20%

These figures reflect Microsoft‘s successful scaling in various sectors, particularly in cloud computing and artificial intelligence solutions.

Leadership Commentary

Satya Nadella, chairman and CEO, emphasized the transformative impact of Microsoft Copilot and Copilot stack, stating, “Microsoft Copilot and Copilot stack are orchestrating a new era of AI transformation, driving better business outcomes across every role and industry.” This indicates Microsoft’s strategic focus on AI as a major driver for future growth and innovation.

Amy Hood, executive vice president and CFO, highlighted the performance of the Microsoft Cloud, which generated $35.1 billion in revenue, up 23% year-over-year. She attributed this growth to “strong execution by our sales teams and partners.”

Business Segment Highlights

Productivity and Business Processes: This segment saw a revenue increase of 12% to $19.6 billion. Notable points include:

– Office Commercial products and cloud services: up 13%, driven by a 15% growth in Office 365 Commercial revenue.

– LinkedIn: Revenue up 10%.

– Dynamics: Revenue increased by 19%, with Dynamics 365 up 23%.

Intelligent Cloud: Revenue in this segment rose to $26.7 billion, a 21% increase, with Azure and other cloud services up 31%.

More Personal Computing: This segment reported $15.6 billion in revenue, up 17%. Key drivers were:

– Windows: Revenue growth of 11%.

– Devices: Revenue decreased by 17%.

– Xbox content and services: A significant increase of 62%, largely influenced by the Activision acquisition.

Capital Return to Shareholders

Microsoft returned $8.4 billion to shareholders during the quarter through share repurchases and dividends, underscoring its commitment to delivering shareholder value.

Future Outlook and Industry Position

Microsoft’s Q3 results demonstrate its robust competitive position and ability to adapt to dynamic market demands, particularly in cloud computing and AI technologies. The company’s strategic investments in AI and cloud infrastructure are likely to further enhance its market dominance and drive future revenue growth.

These results not only highlight Microsoft’s strong financial health but also its potential to lead in the evolving tech landscape, marked by increasing demands for innovative cloud and AI solutions.