Microsoft cloud business boosts Q1 2022 earnings

Microsoft has announced financial results for FY22 Q1, revealing a 22 percent year-on-year increase in total revenue to $45.3bn.

Net income for the quarter totalled $20.5bn – a 48 percent year-on-year increase – and diluted earnings per share rose by 49 percent to $2.71.

The company saw strong performance in its cloud business this quarter, with a 31 percent increase in Intelligent Cloud revenue to $17bn, and sever products and cloud services revenue rising by 35 percent, driven by Azure and other cloud services revenue growth of 50 percent.

Revenue in productivity and business processes was $15bn – an increase of 22 percent – whilst more personal computing revenue rose by 12 percent to $13.3bn.

Satya Nadella, chairman and chief executive officer of Microsoft, said: “Digital technology is a deflationary force in an inflationary economy. Businesses – small and large – can improve productivity and the affordability of their products and services by building tech intensity. The Microsoft Cloud delivers the end-to-end platforms and tools organizations need to navigate this time of transition and change.”

Amy Hood, executive vice president and chief financial officer of Microsoft, added: “We delivered a strong start to the fiscal year with our Microsoft Cloud generating $20.7bn in revenue for the quarter, up 36 percent year over year.”