Microsoft Cloud Leads Robust Earnings and Revenue Beat for MSFT

Software giant Microsoft reported boom Q1 2022 quarter earnings Tuesday after the close as both revenue and earnings beat expectations. Microsoft Cloud generated $20.7 billion in revenue for the quarter, up 36% year over year.

Software giant Microsoft reported boom Q1 2022 quarter earnings Tuesday after the close as both revenue and earnings beat expectations. Microsoft Cloud generated $20.7 billion in revenue for the quarter, up 36% year over year.

Microsoft is the clear No. 2 provider of on-demand computing processing and storage behind market pioneer Amazon.com.

Microsoft First Quarter Earnings After Tuesday Close

$2.27 Beat EPS $2.07 Forecast and $45.32B Beat Revenue $43.97 Billion Forecast

Conference call: 5:30 p.m.

Earnings

Microsoft’s fiscal first-quarter 2022 revenue rose by 22% to $45.32 billion for the period ending Sept. 30, compared to the same period a year ago. Analysts surveyed by Refinitiv had forecasted $43.97 billion for the quarter. MSFT generated $17.21 billion of net income with earnings per share of $2.27, beating analyst estimates of $2.07.

“Digital technology is a deflationary force in an inflationary economy. Businesses – small and large – can improve productivity and the affordability of their products and services by building tech intensity,” Microsoft CEO Satya Nadella said in a statement.

 

Market Reaction 316.30▲ 6.19 (▲2.00%)After Hours

Highlights

All of Microsoft’s segments produced better growth than analysts expected in the first three months of the company’s fiscal year, which followed last quarters launch of a new Xbox and a new version of Windows.

MSFT Earnings Q1 22

Microsoft Cloud

“The Microsoft Cloud delivers the end-to-end platforms and tools organizations need to navigate this time of transition and change.” Microsoft CEO Satya Nadella said in a statement.

“We delivered a strong start to the fiscal year with our Microsoft Cloud generating $20.7 billion in revenue for the quarter, up 36% year over year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.

  • Revenue in Microsoft’s intelligent cloud increased 31% to $17 billion.
  • In addition to strong cloud services results, the company noted that its revenue from productivity and business processes increased 22% to $15 billion.

Microsoft also reported that it returned $10.9 billion to shareholders in the form of share repurchases and dividends in the first quarter of fiscal year 2022, an increase of 14% compared to the first quarter of fiscal year 2021.

 

Source: MSFT

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