Microsoft’s net income surges 27%, revenue up 13% amid AI push

San Francisco, Oct 25

Riding on the AI wave, Microsoft reported $56.5 billion in revenue (up 13 per cent) and a net income of $22.3 billion, an increase of 27 per cent, during its first quarter of 2024 fiscal.

The revenue in the PC vertical was $13.7 billion and increased 3 per cent, according to the company.

Windows revenue increased 5 per cent with Windows OEM revenue growth of 4 per cent, which is a surprise increase as PC sales went down this year globally.

"With copilots, we are making the age of AI real for people and businesses everywhere," said Satya Nadella, chairman and chief executive officer of Microsoft.

"We are rapidly infusing AI across every layer of the tech stack and for every role and business process to drive productivity gains for our customers,” he said in a statement late on Tuesday.

Revenue in Intelligent Cloud was $24.3 billion, an increase of 19 per cent.

Server products and cloud services revenue increased 21 per cent driven by Azure and other cloud services revenue growth of 29 per cent.

“Consistent execution by our sales teams and partners drove a strong start to the fiscal year with Microsoft Cloud revenue of $31.8 billion, up 24 per cent (up 23 per cent in constant currency) year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.

LinkedIn revenue increased 8 per cent while devices revenue decreased 22 per cent.

However, Xbox content and services revenue increased 13 per cent.

Microsoft returned $9.1 billion to shareholders in the form of share repurchases and dividends in the first quarter of fiscal year 2024.