Microsoft's FY24 Q1 Earnings Announcement: A Strong Start To The New Fiscal Year

By Alan Strakey
November 13, 2023

Dive into Microsoft's Q1 FY’24 earnings report, revealing a stellar $56.5 billion in revenue. From Intelligent Cloud dominance to a thriving gaming segment, explore how Microsoft's strategic prowess, innovation and commitment to generative AI are shaping the technology landscape. 

Microsoft FY24 Q1 Earnings

Microsoft recently announced its fiscal year 2024 first-quarter earnings, and the results have left investors, industry analysts and partners impressed by the company's stellar performance. As a major player in the global enterprise software and cloud services market, Microsoft's financials indicate a solid start for the new fiscal year and offer insights into its growth trajectory.


Impressive Revenue Figures

Microsoft's Q1 FY’24 earnings report reveals remarkable growth surpassing the previous quarter, which was already considered their strongest ever. The company reported a combined revenue of $56.5 billion, reflecting a 13 percent (12 percent in constant currency) year-over-year increase. Other notable highlights from the quarter include:

  • Overall operating income was $26.9 billion, an increase of 25 percent ( 24 percent  rise in constant currency).
  • The net income was $22.3 billion,  an increase of 27 percent (up 26 percent in constant currency).
  • There was also a jump in diluted earnings per share, which was $2.99 for an increase of 27 percent (26 percent in constant currency).

These outstanding figures showcase Microsoft's ability to seize opportunities presented by emerging trends, while solidifying its position as an industry leader.


Intelligent Cloud Dominance

It's no surprise that Microsoft's Intelligent Cloud segment had $24.3 billion in revenue, marking a 19 percent increase compared to last year. The growth in Azure and other cloud services revenue soared by an impressive 29 percent, emphasizing the rising demand for cloud computing solutions among businesses worldwide. Microsoft's continued investment in expanding Azure's AI capabilities and its commitment to providing a robust and reliable cloud infrastructure has undoubtedly paid off. 


Strength in Productivity and Business Processes

Microsoft's productivity and business processes segment, which includes popular offerings like Microsoft 365 productivity app subscriptions, LinkedIn, and Dynamics 365, also experienced significant growth. The segment reported revenue of $18.6 billion, representing a 13 percent increase from last year. This growth can be attributed to the company's ability to deliver collaborative solutions and apps that empower organizations and individuals to work smarter and more efficiently. 


Thriving More Personal Computing Segment

Microsoft's personal computing segment covers Windows, Bing, Surface, Xbox devices and gaming, all of which demonstrated commendable performance. The segment generated $13.7 billion in revenue, reflecting a 3 percent year-over-year growth with the most significant update to Windows 11. Microsoft has introduced a whopping 150 new features. Alongside the highly anticipated release of Starfield and the ever-popular Minecraft, Microsoft has captured the attention of consumers and gaming enthusiasts worldwide. 


Outlook and Continued Innovation

Microsoft's strong start to FY24 sets an optimistic tone for the rest of the fiscal year. The company has experienced revenue growth across its various business segments, particularly in commercial cloud services and their advancements in AI. This ongoing innovation and commitment to making the age of AI real for people and businesses everywhere positions Microsoft as a leader in the constantly evolving technology landscape.


For more information on Microsoft's Q1 FY'24 earnings, visit their official investor page at