Microsoft (MSFT) shares fell 3.2% in extended trading on Thursday, even as the software giant reported fiscal first-quarter results that topped Wall Street’s expectations.
For the period ending Sept. 30, the Satya Nadella-led firm said it earned an adjusted $4.13 per share as revenue rose 18% year-over-year to $77.67B. Included in that was $30.9B from its Intelligent Cloud division, which consists of its Azure cloud unit. Microsoft said Azure revenue grew 40% year-over-year and 39% in constant currency.
Total cloud related revenue was $49.1B for the period, while Productivity and Business Processes revenue came in at $33.02B, above the $32.29B estimate. Included in that was a 17% year-over-year rise in Microsoft 365 Commercial cloud revenue (15% in constant currency); a 26% rise in Microsoft 365 Consumer cloud revenue (25% in constant currency); a 10% increase in LinkedIn revenue (up 9% in constant currency); and an 18% increase in Dynamics 365 revenue, up 16% in constant currency.
More Personal Computing revenue for the period was $13.76B, above the $12.88B estimate.
“Our planet-scale cloud and AI factory, together with Copilots across high value domains, is driving broad diffusion and real-world impact,” said Nadella in a statement. “It’s why we continue to increase our investments in AI across both capital and talent to meet the massive opportunity ahead.”
A consensus of analysts expected the company to earn an adjusted $3.67 per share on revenue of $75.55B.
The company will host a conference call at 5:30 p.m. EST to discuss the results, where it will also provide guidance for the coming quarter.