There are no surprises in Microsoft’s earnings calls these days, and for the better. We know the company is thriving, so the question becomes just how much growth has been achieved. For the fiscal year first quarter 2022 (FY22 Q1) earnings call, Microsoft reports revenue of $45.3 billion in revenue.
That represents a 22% increase year-on-year. Microsoft also confirmed its operating income for FY22 Q1 was $20.2 billion, up 27% from the same period a year ago. Elsewhere, the numbers continue to make good reading for Microsoft investors.
For example, net income reached $20.5 billion, up 48%. As has often been the case in recent years, Microsoft’s cloud business is the primary reason for the significant gains.
Office Commercial and Cloud revenue increased 18%, Office 365 Commercial jumped 23%, and Office Consumer grabbed a 10% growth. As for Microsoft 365 Consumer, it now has 54.1 million subscribers. We reported on LinkedIn’s own substantial growth, including a 42% gain in revenue and 20% increase in engagement sessions.
Continuing the list of successes, Dynamics enjoyed growth of 31%, while Server products jumped a massive 35%. Azure, which has been the linchpin of Microsoft’s modern success saw more huge gains, up 50% year-on-year.
In total, the Productivity and Business Processes division claimed $15 billion in revenue, up 22% compared to the same quarter last year. Intelligent Cloud did even better, with 31% growth on $17 billion revenue.
Windows, Xbox, and Surface
More Personal Computing is the section that Microsoft puts Windows, Surface, and Xbox into. During FY22 Q1, the division claimed $13.3 billion in revenue, up 12% YoY. Windows Commercial led the charge with 12% growth, following by Windows OEM with 10%.
Xbox only grew 2% despite this being the first year of Xbox Series X, perhaps highlighting the supply issues. However, this also accounts for Xbox services, so the growth is muted instead of noteworthy.
One surprising area of massive growth cam in Search and News advertising, which jumped 40%.
The one black mark in the earnings report continues to be Microsoft’s Surface hardware division. It declined again last quarter, dropping 17% year-on-year.
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