Microsoft has posted yet another profitable quarter which smashed earnings estimates of the trading analysts. This is yet another feat of the hardware and software maker as the Windows-OS manufacturer has been posting rising profits over recent times. For Q1 of 2022, the company’s total revenue grew 22% year on year as per the company statement. This has been the fastest growth Microsoft experienced since 2018.
Microsoft profitability was fueled by Azure’s robust performance. The cloud product of the IT giant posted a 48% growth in constant currency. This growth beat the analysts’ estimates of a 47.5% growth. Microsoft’s Chief Financial Officer Amy Hood stated that the organization was expecting “broad-based growth” for Azure in Q2, 2022. This is a key indicator as Microsoft doesn’t provide a breakdown of the Azure revenue, and this is the only source of information that reveals how Azure is faring in the cloud arena.
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This growth is an after-effect of the COVID-19 outbreak as most institutions, companies, and schools have become digital to run their business operations. Due to the same reason, revenue for Linkedin and Teams messaging services increased. This, in turn, contributed to the overall revenue growth of Microsoft.
Microsoft’s Intelligent Cloud segment performed laudably as the demand for its products grew substantially. The vast software segment, which houses Azure public cloud and GitHub, grew by 31% year on year, and it delivered a whopping USD 16.96 billion as revenue. This was way above the analysts’ estimate, which was pegged at USD 16.51 billion.
Overall, Microsoft’s net income shot up to USD 20.51 billion, and the results bagged a USD 3.3 billion net income tax benefit. The net income grew by 48%.
