Microsoft’s Net Income was Up 20% in 2023 Q4 Results

Microsoft (NASDAQ: MSFT) announced its 2023 Q4 financial results on July 25, 2023. According to the announcement, total revenue was up 8% (YoY, 3 months). Among them, service and other were up 16% and product was down 6%. In addition, operating income was up 8% and net income was up 20%.

Looking at revenue by segment, intelligent cloud segment had the highest growth of up 15% (YoY, 3 months). This was followed by productivity and business processes segment of up 10%.

As for operating income, the productivity and business processes segment recorded the highest growth of up 25%. This was followed by the intelligent cloud segment of up 20%. Moreover, the productivity and business processes segment recorded 49% as segment operating margin (3 months). The intelligent cloud segment recorded 44%.

Looking revenue growth by product/service, Dynamics 365 had the highest revenue growth of up 26% (GAAP, YoY, 6 months). This was followed by Azure and other cloud services of up 26%. Meanwhile, Devices recorded the biggest drop of down 20%. This was followed by Windows OEM of down 12%.

Furthermore, net cash from operations  was up 17% (YoY, 3 months). In addition, free cash flow was up 32%.

Despite the higher revenue growth, Microsoft suppress growth of costs. This enabled Microsoft’s higher profit growth even under inflationary environment. We expect Microsoft’s continuous growth in the future.

Microsoft Corporation (NASDAQ: MSFT) Stock Chart

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