Summary
Microsoft Corporation reported strong financial results for the third quarter and the first nine months of fiscal year 2024, demonstrating robust revenue and profit growth. Total revenue for the quarter ending March 31, 2024, rose 17% year-over-year to $61.9 billion, driven by broad-based strength across all segments: Intelligent Cloud, Productivity and Business Processes, and More Personal Computing. Net income for the quarter increased 20% to $21.9 billion, or $2.94 per diluted share, reflecting effective cost management and strong operational performance, particularly in cloud services. The acquisition of Activision Blizzard continues to be integrated, significantly boosting the Gaming segment's revenue. The company highlighted continued growth in its Microsoft Cloud offerings, with revenue up 23% to $35.1 billion, underscoring its strategic focus on cloud and AI. Looking ahead, Microsoft maintains a strong liquidity position and continues to invest in AI infrastructure and innovation, signaling confidence in future growth drivers. The company's commitment to returning capital to shareholders through dividends and share repurchases remains a key aspect of its capital allocation strategy.
Financial Highlights
53 data points| Revenue | $61.86B |
| Cost of Revenue | $18.50B |
| Gross Profit | $43.35B |
| R&D Expenses | $7.65B |
| Operating Income | $27.58B |
| Interest Expense | $800.00M |
| Net Income | $21.94B |
| EPS (Basic) | $2.95 |
| EPS (Diluted) | $2.94 |
| Shares Outstanding (Basic) | 7.43B |
| Shares Outstanding (Diluted) | 7.47B |
Key Highlights
- 1Total revenue for the three months ended March 31, 2024, increased 17% to $61.9 billion compared to the prior year quarter.
- 2Net income for the quarter grew 20% to $21.9 billion, resulting in diluted earnings per share of $2.94, up 20% year-over-year.
- 3Microsoft Cloud revenue surged 23% to $35.1 billion, driven by strong performance in Azure and other cloud services which grew 31%.
- 4The acquisition of Activision Blizzard significantly impacted the 'More Personal Computing' segment, contributing substantially to the 51% revenue growth in Gaming.
- 5Operating income increased by 23% to $27.6 billion, showcasing improved profitability across segments.
- 6The company returned $8.4 billion to shareholders in the third quarter of fiscal year 2024 through share repurchases and dividends.
- 7Research and development expenses increased by 10% to $7.7 billion, reflecting continued investment in innovation, particularly in Gaming and AI.