- Microsoft Corporation’s (NASDAQ: MSFT) third-quarter FY22 revenue was $49.4 billion, an increase of 18% year-over-year, above the consensus of $49.03 billion.
- Net income improved by 8.2% to $16.73 billion, and EPS improved to $2.22 from $2.03 in 3Q21, beating the consensus of $2.18.
- Revenue from Productivity and Business Processes was $15.8 billion (+17% Y/Y), Intelligent Cloud was $19.1 billion (+26% Y/Y), More Personal Computing was $14.5 billion (+11% Y/Y).
- Office Commercial products and cloud services revenue increased 12% Y/Y, driven by Office 365 Commercial revenue growth of 17% Y/Y. LinkedIn revenue increased 34% Y/Y.
- Windows OEM revenue increased 11% Y/Y, Windows Commercial products and cloud services revenue increased 14% Y/Y, and Search and news advertising revenue excluding traffic acquisition costs increased 23% Y/Y.
- The operating income was $20.35 billion (+19.5% Y/Y) in the quarter, with a margin of 41.3%, up 40 bps.
- Microsoft generated cash from operating activities year-to-date of $64.1 billion versus $54.03 billion in 2021.
- Microsoft returned $12.4 billion to shareholders in the form of share repurchases and dividends in the quarter.
- “Continued customer commitment to our cloud platform and strong sales execution drove better than expected commercial bookings growth of 28% and Microsoft Cloud revenue of $23.4 billion, up 32% year over year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.
- Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.
- Price Action: MSFT shares are trading lower by 1.51% at $266.15 during the post-market session on Tuesday.
