Sustained cloud boom brings Microsoft strong profit jump

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Microsoft also made splendid earnings in the most recent fiscal quarter thanks to its flourishing cloud services. The company’s revenue grew 22 percent year-over-year to $ 45.3 billion in the three months ended September. With this, the group exceeds the expectations of the financial analysts of 44 billion dollars, the share increases slightly after hours. For Microsoft, that was the first quarter of the 2022 financial year.

Microsoft’s operating profit rose 27 percent to $ 20.2 billion. That goes out Business figures emerge from Microsoft Tuesday published after the US market closed. Net profit rose by as much as 48 percent year-on-year to $ 20.5 billion, partly due to a multi-billion dollar tax credit.

Above all, the cloud business with the Azure platform, which provides IT services and storage space in the network to many other companies and apps, is booming (sales + 50%). In contrast to Amazon and Google and their cloud services, Microsoft does not give any sales figures for Azure, but Microsoft’s entire “Intelligent Cloud” division has grown by 31 percent to 17 billion dollars. Microsoft is also benefiting from the home office trend. With a share of 37.5 percent, the cloud sector remains Microsoft’s largest revenue generator.

The PC division improved its sales by twelve percent. In addition to Windows software, hardware products such as the Xbox game console or the recently ailing business with Surface tablets are located here. The latter recorded a 17 percent drop in sales. Microsoft is also affected by the shortage of chips and problems in the supply chain, noted CFO Amy Hood in a conference call. Nevertheless, Windows sales to PC manufacturers have increased by ten percent.

The career network LinkedIn, which belongs to the group, reports strong growth (sales + 42%). This is where advertising revenues that are up by 61 percent help.

While Microsoft’s revenue and profit have increased significantly year-on-year, they remain at the level of the previous quarter. In the last quarter of the financial year 2021 (April to June 2021), Microsoft was able to increase profits and revenues thanks to the cloud boom and office services. At that time, sales were even slightly higher at $ 46.2 billion, but operating income was lower than now ($ 20.2 billion) at $ 19.1 billion.

For the current second quarter of the 2022 financial year, management expects further cloud growth. In addition, Chief Financial Officer Hood expects revenue from Microsoft 365, the cloud-based combination of online service, Office web application and Office software subscription, to continue to rise. The number of Microsoft 365 subscribers has increased by four percent compared to the last two quarters – from 51.9 million to 54.1 million users. (with material from dpa) /


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