Microsoft Quarterly Results: Shares of Microsoft, one of the world’s largest IT companies, rose over 3 per cent in after-hours trading on Wednesday (local time) after the technology giant reported better-than-expected results for the quarter ended September 30.
As of 9:00 PM EDT, Microsoft shares were trading 3.1 per cent, or USD 16.68, higher at USD 547.69 in after-hours trading. During the regular trading session on October 28, the stock settled largely unchanged at USD 531.01.
Microsoft Q1 Results
Microsoft reported revenue of USD 92.3 billion for the quarter, marking a 19 per cent year-on-year increase compared with the corresponding quarter of the previous fiscal year.
The company’s profitability also improved, with operating income rising 21 per cent year-on-year to USD 45.9 billion. On a constant-currency basis, operating income grew 22 per cent.
Microsoft’s net income increased 32 per cent year-on-year to USD 36.6 billion on a GAAP basis. Excluding the impact of its investments in OpenAI, non-GAAP net income stood at USD 36.4 billion, up 18 per cent year-on-year, or 19 per cent in constant currency.
The company also reported strong growth in earnings per share (EPS). Diluted EPS rose 32 per cent to USD 4.92 on a GAAP basis. On a non-GAAP basis, diluted EPS stood at USD 4.89, representing an 18 per cent increase from the year-ago period, or 19 per cent growth in constant currency.
Microsoft Q2 Revenue Outlook
Looking ahead, Microsoft expects revenue for the ongoing second quarter to range between USD 96 billion and USD 97.1 billion. The projected range implies year-on-year revenue growth of 18.8 per cent, according to the company’s outlook.
Commenting on the results, Amy Hood, executive vice president and chief financial officer of Microsoft, said the company had made a strong start to the fiscal year, with Microsoft Cloud revenue reaching USD 63.9 billion.
“We delivered a strong start to the fiscal year with Microsoft Cloud revenue of $63.9 billion, with growth accelerating to 30% (up 31% in constant currency) year-over-year,” Hood said.
She added, “Results exceeded expectations across revenue, operating income, and earnings per share.”
Microsoft CEO on Q1 Results
Satya Nadella, chairman and chief executive officer of Microsoft, highlighted the company’s focus on delivering greater capabilities, flexibility and cost efficiency to customers across its technology offerings.
“We are delivering greater capability, choice, control, and cost efficiency for customers across our entire stack,” Nadella said.
He added that the company was working to help organisations develop and own their intelligence while building trust through agent safety and security.
“By helping organizations build and own their own intelligence, and earning trust through agent safety and security, we are translating our innovation into growing adoption and real-world impact across every industry,” Nadella said.