Summary
Microsoft Corporation reported strong financial results for the third quarter and first nine months of fiscal year 2022, driven by continued growth across its key segments. Total revenue for the third quarter increased 18% year-over-year to $49.4 billion, with net income rising 8% to $16.7 billion. Diluted earnings per share also saw a healthy increase. The company highlighted significant growth in its Intelligent Cloud segment, particularly from Azure and other cloud services, and sustained strength in its Productivity and Business Processes segment driven by Office 365 Commercial and LinkedIn. Despite some headwinds in the More Personal Computing segment, overall performance demonstrates robust demand for Microsoft's cloud offerings and diversified product portfolio.
Financial Highlights
53 data points| Revenue | $49.36B |
| Cost of Revenue | $15.62B |
| Gross Profit | $33.74B |
| R&D Expenses | $6.31B |
| Operating Income | $20.36B |
| Interest Expense | $503.00M |
| Net Income | $16.73B |
| EPS (Basic) | $2.23 |
| EPS (Diluted) | $2.22 |
| Shares Outstanding (Basic) | 7.49B |
| Shares Outstanding (Diluted) | 7.53B |
Key Highlights
- 1Total revenue for Q3 FY22 grew 18% to $49.4 billion, compared to $41.7 billion in Q3 FY21.
- 2Net income for Q3 FY22 increased 8% to $16.7 billion, resulting in diluted EPS of $2.22, up from $2.03 in the prior year.
- 3Intelligent Cloud segment revenue surged 26% to $19.1 billion, with Azure and other cloud services growing by 46%.
- 4Productivity and Business Processes segment revenue increased 17% to $15.8 billion, fueled by Office Commercial products and cloud services (up 12%) and LinkedIn (up 34%).
- 5More Personal Computing segment revenue rose 11% to $14.5 billion, driven by Windows and Search and news advertising growth.
- 6The company completed the acquisition of Nuance Communications for $18.8 billion in March 2022, integrating its AI capabilities into the Intelligent Cloud segment.
- 7Microsoft Cloud revenue increased 32% to $23.4 billion for the quarter.