Summary
Microsoft Corporation (MSFT) reported strong financial results for the first quarter of fiscal year 2024, with total revenue reaching $56.5 billion, a 13% increase year-over-year. This growth was primarily driven by the Intelligent Cloud segment, which saw a 19% revenue increase to $24.3 billion, fueled by Azure and other cloud services growing 29%. The Productivity and Business Processes segment also demonstrated robust performance, with a 13% revenue increase to $18.6 billion, largely due to the strong uptake of Office 365 Commercial. Net income surged by 27% to $22.3 billion, translating to diluted earnings per share of $2.99, up from $2.35 in the prior year period. The company's liquidity remains strong, with cash, cash equivalents, and short-term investments totaling $144 billion. A significant subsequent event noted is the completion of the Activision Blizzard acquisition for $61.8 billion, which is expected to accelerate growth in Microsoft's gaming business. Investors should note the ongoing IRS audit concerning intercompany transfer pricing, where the IRS is seeking an additional $28.9 billion plus penalties and interest.
Financial Highlights
53 data points| Revenue | $56.52B |
| Cost of Revenue | $16.30B |
| Gross Profit | $40.22B |
| R&D Expenses | $6.66B |
| Operating Income | $26.89B |
| Interest Expense | $525.00M |
| Net Income | $22.29B |
| EPS (Basic) | $3.00 |
| EPS (Diluted) | $2.99 |
| Shares Outstanding (Basic) | 7.43B |
| Shares Outstanding (Diluted) | 7.46B |
Key Highlights
- 1Total revenue increased by 13% year-over-year to $56.5 billion, driven by growth in Intelligent Cloud and Productivity and Business Processes segments.
- 2Intelligent Cloud revenue grew 19% to $24.3 billion, with Azure and other cloud services up 29%.
- 3Productivity and Business Processes revenue rose 13% to $18.6 billion, supported by a 18% increase in Office 365 Commercial revenue.
- 4Net income saw a significant increase of 27% to $22.3 billion, resulting in diluted EPS of $2.99.
- 5Microsoft's cash, cash equivalents, and short-term investments stood at a strong $144 billion as of September 30, 2023.
- 6The company completed the $61.8 billion acquisition of Activision Blizzard, Inc. on October 13, 2023.
- 7The IRS is seeking $28.9 billion plus penalties and interest related to intercompany transfer pricing audits for tax years 2004-2013.