Microsoft last Wednesday, October 30, released information about its earnings for the first fiscal quarter.
The revenue of the mentioned technology giant, headquartered in Redmond, Washington, for the fiscal quarter that ended on September 30, was fixed at $65.59 billion. This indicator showed an increase of 16% year-on-year. It is worth noting that the preliminary forecast of LSEG provided that Microsoft’s revenue for the first fiscal quarter would be fixed at $64.51 billion.
Earnings per share in this case amounted to $3.3. The preliminary forecast of LSEG provided that this figure would reach $3.1.
The technology giant’s net income for the first fiscal quarter was fixed at $24.67 billion. This indicator showed an increase of 11% compared to the result a year ago.
The technology giant also predicts that its revenue for the current fiscal quarter will range from $68.1 billion to $69.1 billion. In this case, it implies an increase of the indicator by more than 10% year-on-year. At the same time, analysts surveyed by LSEG expected Microsoft’s revenue for the current fiscal quarter to reach $69.83 billion.
It is worth noting that against the background of the forecast for the mentioned indicator, which in a negative sense did not coincide with expectations, on Thursday, October 31, the value of shares of the technology giant fell by 6%. It was the worst day for Microsoft securities in the last two years. In the relevant context, it is worth mentioning that on October 26, 2022, the company’s securities fell in price by 7.7%.
Outside suppliers are not in time to deliver data center infrastructure to Microsoft. This means that the technology giant will not be able to meet demand in the second fiscal quarter.
Microsoft chief executive officer Satya Nadella said on a conference call with analysts he feels pretty good that supply and demand will partially match up in the second half of the current fiscal year.
The technology giant’s revenue from productivity and business processes in the first fiscal quarter was fixed at $28.32 billion. This indicator increased by 12% year-on-year. The forecast of analysts surveyed by bt StreetAccount provided that the mentioned revenue would amount to $27.9 billion.
Investors were also able to get more detailed information about the consumption of cloud computing at Microsoft. For the first time, revenue growth figures for Azure and other cloud services do not take into account mobility and security and Power BI data analytics sales. The increase in Azure revenue for the first fiscal quarter was 33% or 34% at constant currency. In this case, 12 points come from artificial intelligence services.
Amy Hood, Microsoft’s finance chief, said demand continues to be higher than the company’s available capacity. She predicts that Azure revenue will grow by 31-32% at constant currency in the second fiscal quarter.
Total revenue in Intelligent Cloud for the first fiscal quarter was fixed at $24.3 billion. This indicator increased by 19% year-on-year.
Revenue in More Personal Computing for the first fiscal quarter amounted to $13.7 billion. This indicator increased by 3% year-on-year.
As we have reported earlier, Microsoft to Invest $4.8 Billion in Italy.
