Microsoft Reports Q1 Revenue Surge to $92.3 Billion, Beating Estimates
Microsoft reported a fiscal first-quarter revenue increase of 19% to $92.3 billion, beating Wall Street forecasts. Azure revenue surged 48% to reach $33.17 billion, while shares rose 4% in after-hours trading.
Microsoft reported its fiscal first-quarter earnings for the period ending September 30, beating Wall Street expectations with strong revenue growth driven by artificial intelligence demand and cloud services.
The software giant posted an adjusted net income of $4.89 per share, as revenues surged 19% year-over-year to $92.3 billion. Wall Street analysts had expected an adjusted net income of $4.73 per share on revenues of $90.69 billion. Following the report, Microsoft shares rose 4% in after-hours trading.
Microsoft's net income reached $36.63 billion, or $4.92 per share, compared to $27.75 billion, or $3.72 per share, in the same period last year. The adjusted profit excludes an impact of approximately $200 million stemming from its investment in OpenAI.
Free cash flow stood at $18.63 billion, marking a 27% decrease. This drop reflects heavy capital expenditures on data centers to meet the surging demand for artificial intelligence infrastructure.
For the first time in an earnings report, Microsoft disclosed its cloud services revenue for Azure in dollar terms, reaching $33.17 billion for the quarter—a 48% surge that outpaced the average analyst consensus of $32.32 billion.
