Microsoft / News/PR

Microsoft credits cloud services for quarterly revenue growth

Microsoft revenue

According to the latest release by Microsoft Corporation, its annual revenue increased by 18% to $198.3 billion when the fiscal year ended on June 30, 2022. Quarterly revenue in the last quarter was $51.9 billion with 12% year-over-year (YoY) growth.

The annual operating income was $83.4 billion and increased by 19% while the quarterly operating income increased by 8% YoY and reached $20.5 billion than last year.

Net income was $72.7 billion GAAP (up by 19%), and $69.4 billion non-GAAP (up by 15%) when the fiscal year closed in 2022. Net income in the last quarter of 2022 was $16.7 billion with an increase of 2%.

At the end of the fiscal year, diluted earnings per share was $9.65 GAAP with an increase of 20% and $9.21 non-GAAP with an increase of 16%.

Office Commercial products, Office Consumer products, and Dynamics products contributed to an overall 13% increase in the revenue of Microsoft’s Productivity and Business Processes sector as it reached $16.6 billion.

The revenue from Azure and other cloud services grew by 40% and the Intelligent Cloud revenue was up by 20% reaching $20.9 billion at the end of June 2022.

“In a dynamic environment, we saw strong demand, took share, and increased customer commitment to our cloud platform. Commercial bookings grew 25% and Microsoft Cloud revenue was $25 billion, up 28% year over year,” said Amy Hood, executive vice president, and chief financial officer of Microsoft. “As we begin a new fiscal year, we remain committed to balancing operational discipline with continued investments in key strategic areas to drive future growth.”

Although revenue in the More Personal Computing sector grew by 2% to $14.4 billion, Windows OEM revenue and Xbox content and services revenue fell by 2% and 6% respectively. However, Windows Commercial products and cloud services were able to increase their revenue by 6%.

“We see real opportunity to help every customer in every industry use digital technology to overcome today’s challenges and emerge stronger,” said Satya Nadella, chairman and chief executive officer of Microsoft. “No company is better positioned than Microsoft to help organizations deliver on their digital imperative – so they can do more with less.”

Microsoft said in its press release that in the fourth quarter of the fiscal year 2022, it returned $12.4 billion to shareholders in the form of share repurchases and dividends which is a 19% increase compared to the fourth quarter of the fiscal year 2021.

Read next: Microsoft Inspire 2022 – Summary of key announcements

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