Microsoft has presented a report for the fourth quarter of the fiscal year. Earnings per share were $ 2.17 versus the projected $ 1.92. Revenue reached $ 46.15 billion against the expected $ 44.24 billion. Despite the better-than-expected performance, the stock fell 3%.
- Earnings: $2.17 per share, adjusted, vs. $1.92 per share as expected by analysts, according to Refinitiv.
- Revenue: $46.15 billion, vs. $44.24 billion as expected by analysts, according to Refinitiv.
Revenue for the quarter ended June 30 was up 21% year-on-year, according to the report. On a sequential basis, revenue growth was 19%. The Productivity and Business Processes division generated revenue of $ 14.69 billion for the company. Microsoft’s More Personal Computing segment, which includes Windows, devices, gaming, and search advertising, generated $ 14.09 billion. It should be noted that at the same time, revenue from the sale of Windows licenses to OEMs decreased by 3%. Microsoft is currently planning to boost the PC market with Windows 11, which is expected to launch publicly in October.
This quarter saw the impact of the new Surface Laptop 4 and Surface Pro 7 Plus on total Surface device revenues for the first time. Nevertheless, Microsoft’s revenue from the sale of branded computers fell by 20% due to a limited supply, due, apparently, to a shortage of chips. It’s also worth noting that Surface sales were extremely strong in the same period last year.
Microsoft’s revenue soars more than 20% despite declining sales of Windows and Surface
The Xbox Series X and Series S consoles have helped Microsoft grow hardware revenues. They, as expected, rose 172% year on year. The company’s total gaming revenue grew 11%, while its Xbox content and service revenue declined 4%. Curiously, Microsoft did not disclose details about the number of Game Pass subscribers. More than 18 million people used it in January. Since then, Microsoft has not disclosed how this figure is changing.
In Office, Microsoft is doing well here. Office Business Suite revenue grew 20 percent, while Office Consumer grew 18 percent. Microsoft 365 subscribers grew to 51.9 million, up 22 percent from a year earlier.
Cloud revenue grew 34 percent from a year ago. At the same time, revenue from Azure alone grew by 51 percent. Microsoft’s total cloud revenue was $ 17.4 billion. LinkedIn is also doing well, with revenue growing 46 percent. Search ad revenue increased 53 percent over the same period last year.
According to CNBC, during the fiscal fourth quarter, Microsoft announced its intent to acquire speech-recognition company Nuance Communications for $19 billion, including debt. It also introduced Windows 11, a new version of its desktop operating system, although sales of licenses to device makers will be deferred.