Microsoft Revenues Up 17 Percent to $81.3 Billion

Microsoft announced that it earned a net income of $38.5 billion on revenues of $81.3 billion in the quarter ending December 31. Those figures represent gains of 60 percent and 17 percent, respectively, year-over-year (YOY).

“We are only at the beginning phases of AI diffusion and already Microsoft has built an AI business that is larger than some of our biggest franchises,” Microsoft chairman and CEO Satya Nadella said. “We are pushing the frontier across our entire AI stack to drive new value for our customers and partners.”

Microsoft says it exceeded its expectations across revenue, operating income, and earnings per share in the quarter. Here’s a quick look at each of its major business units.

Productivity and Business Processes was again Microsoft’s biggest business, and it saw revenues increase by 16 percent to $34.1 billion. Microsoft 365 Commercial cloud revenue was up 17 percent YOY, while Microsoft 365 Consumer cloud revenue was up 29 percent YOY.

Intelligent Cloud revenues were up 29 percent in the quarter to $32.9 billion, thanks largely to Azure revenue jumping 39 percent YOY.

And More Personal Computing again brought up the rear with $14.3 billion in revenues, a decline of 3 percent YOY. Windows revenues from PC makers and device was up just 1 percent, while Xbox content and services revenue decreased 5 percent YOY.

Microsoft’s capital expenditures (i.e. AI expenses) in the quarter were $37.5 billion, up 66 percent YOY. In the previous sequential quarter, they were $34.9 billion.

More soon.