Microsoft profit rises 48% in first quarter

Cloud services grow 50% year-on-year

Microsoft stock traded up in pre-market Wednesday trading after the technology giant’s first-quarter earnings surpassed analyst forecasts. 

Expectations exceeded

The Washington-based firm’s net income grew by 48% year-on-year to $20.5bn (£14.9bn). Adjusted earnings per share of $2.27 beat the $2.07 per share that analysts polled by Refinitiv had predicted. 

Revenue in the three months to 30 September amounted to $45.32bn. This consituted a 22% rise from the first quarter of the previous financial year, and the fastest growth since 2018. Analysts had forecast revenue of $43.97bn. 

Cloud services

A rapid expansion of Microsoft’s cloud computing division accounted for much of these expectation-beating figures. Cloud services sales rose 50% from the year before, having risen by 51% in the preceding quarter. 

Microsoft’s Intelligent Cloud division saw revenue rise by 31% year-on-year to $16.96bn, $450m above expectations. The sector includes the company’s popular Azure public cloud service, which runs applications and stores data for corporations. 

Commenting on the figures, chief financial officer Amy Hood said: “We expect healthy broad-based growth in our Azure consumption business consistent with recent trends and our user business, while continuing to benefit from Microsoft 365 momentum to see a moderation of growth rates given the size of the install base.”

Revenue guidance

Microsoft outlined second-quarter revenue guidance of between $50.15bn and $51.05bn, higher than the $48.92bn predicted by analysts. 

Thanks in large part to its investment in the burgeoning cloud services sector, the company is now within touching distance of Apple in the race to be the most valuable public company in the United States. 

Microsoft traded up 1.4% in before the opening bell at $310.11, up 36% since the start of the year.

Further reading: Microsoft vs. Apple stock: how do they compare?

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image