Microsoft reports 8% rise in Q4 revenues for fiscal year 2023
Microsoft Corporation reported an increase in revenues by 8% amounting to $56.2 billion for the fourth quarter ending June 30, 2023, compared to the previous fiscal year.
Net income observed a boost of 20% to reach $20.1 billion, while operating income rose by 18% to $24.3 billion. Notably, diluted earnings per share saw an increase of 21%, hitting $2.69.
The corporation’s Productivity and Business Processes segment brought in $18.3 billion in revenue, marking a 10% growth. In this division, Office Commercial products and cloud services revenue surged by 12%, primarily fueled by a 15% rise in Office 365 Commercial revenue. Moreover, Microsoft 365 Consumer subscribers increased to 67 million, leading to a 3% rise in Office Consumer products and cloud services revenue. Other significant contributors included a 19% rise in Dynamics products and cloud services revenue and a 5% revenue increase from LinkedIn.
Dynamics and Azure drive revenue increase for Microsoft in FY23 Q4. Photo courtesy of efes from Pixabay.
Microsoft’s revenue in Intelligent Cloud reached $24 billion, reflecting a 15% increase. The rise was largely driven by a 17% boost in server products and cloud services revenue, attributed to 26% growth in Azure and other cloud services revenue.
Revenue for More Personal Computing, however, saw a 4% decrease, totaling $13.9 billion. Despite the decrease, the Xbox content and services revenue rose by 5% and Search and news advertising revenue excluding traffic acquisition costs surged by 8%.
For the fiscal year 2023, Microsoft recorded a revenue of $211.9 billion, marking a 7% increase. Operating income was $88.5 billion (GAAP) and $89.7 billion (non-GAAP), growing by 6% and 8% respectively. Net income slightly decreased to $72.4 billion (GAAP), but increased to $73.3 billion (non-GAAP) marking a 6% rise. Diluted earnings per share increased slightly to $9.68 (GAAP) and rose by 7% to $9.81 (non-GAAP).
During the fourth quarter, Microsoft returned $9.7 billion to shareholders in share repurchases and dividends. Satya Nadella, the chairman and CEO of Microsoft, stated, “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. 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.”