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.
- Watanabe & Brothers’ Investment is holding shares of Microsoft Corporation.
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