Over the years Microsoft and other tech giants made hundreds of billions of dollars. The company founded by Bill Gates and Paul Allen once more demonstrated its capabilities in the fiscal first quarter. The company reported fiscal first-quarter earnings that exceeded expectations.
Microsoft’s total revenue climbed about 22% year over year, according to a statement. Revenue jumped 21% in the previous quarter.
The tech giant reported $20.5 billion in net income, growing 48%.
With reference to guidance, it called for $50.15 to $51.05 in fiscal second-quarter revenue. Importantly, that works out to $50.60 billion at the middle of the range.
Microsoft and interesting details
The company’s Intelligent Cloud segment includes the Azure public cloud, enterprise services, GitHub, System Center, SQL Server, Visual Audio, and Windows Server delivered $16.96 billion in revenue. Its revenue jumped 31% year over year.
According to Microsoft, Azure and other cloud services grew 50% year over year in the quarter. The result was more robust than the tech giant itself predicted three months ago. The company’s finance chief Amie Hood called for Azure growth to be relatively stable in constant currency. Notably, this time around Azure growth was 48% in constant currency, above the 45% figure in the prior quarter. The company does not reveal Azure revenue in dollars.
Microsoft’s Productivity and Business Processes unit, which includes Dynamics, LinkedIn as well as Office, contributed $15.04 billion in revenue.
The company’s More Personal Computing business posted $13.31 billion in revenue. That result is above the $12.72 billion consensus.
However, sales of Windows to device makers jumped 10%, and the company said that PC supply constraints affected its More Personal Computing business. Microsoft saw strength in sales of commercial PCs in particular. Amie Hood called for an acceleration in Windows sales to device makers for the fiscal second quarter.
In the quarter, the company introduced new Surface PCs. Microsoft also made several important announcements. The company said it was acquiring security start-ups RiskIQ and CloudKnox. Microsoft also announced plans to increase the cost of commercial Office 365 subscriptions. The changes will into effect in several months more precisely on March 1, 2022.
Charlie Bell who used to work for Amazon now works for Microsoft. The company hired Bell to work on cybersecurity. Microsoft also plans to spend more money on security research and development.