Microsoft (MSFT) Q1 2022 earnings release beats revenue and EPS expectations

Today, Microsoft (MSFT) released its Q1 2022 earnings report. The company beat revenue expectation and EPS expectations. Microsoft largely attributed this to the Microsoft Cloud.

In its Q1 2022 earnings release, Microsoft reported revenue at $45.3 billion, an increase of 22%. It also reported a basic EPS of $2.73 and a diluted EPS of $2.71. GAAP results include a $3.3 billion net income tax benefit, although it’s important to note that if you factor out that benefit, Microsoft still beat expectations.

Executive Vice President and Chief Financial Officer of Microsoft Amy Hood commented that, “We delivered a strong start to the fiscal year with our Microsoft Cloud generating $20.7 billion in revenue for the quarter, up 36% year over year.”

Interestingly enough, Microsoft didn't have much to say about Xbox. Xbox content and services revenue increased 2%, putting it well behind server products and cloud services like Azure. In fact, revenue in Microsoft's Intelligent Cloud segment was $17.0 billion, an increase of 31%, while the More Personal Computing segment showed revenue of $13.3 billion, up only 12%.

Q1 2022 Microsoft (MSFT) earnings release highlights

Below is a list of the hlighlights called out by Microsoft in their Q1 2022 earnings press release:

Revenue was $45.3 billion and increased 22%
Operating income was $20.2 billion and increased 27%
Net income was $20.5 billion GAAP and $17.2 billion non-GAAP, and increased 48% and 24%,respectively
Diluted earnings per share was $2.71 GAAP and $2.27 non-GAAP, and increased 49% and 25%,respectively
GAAP results include a $3.3 billion net income tax benefit explained in the Non-GAAP Definition section below

Listen to the Microsoft Fiscal Year 2022 webcast

For those that would like to listen to the conference call, you can tune into the Microsoft Fiscal Year 2022 First Quarter Earnings using the link just provided. The call is set to go live at 2:30 p.m. PDT / 5:30 p.m. EDT. The webcast will go live 30 minutes prior to the call. Once you’re at the link, be sure to refresh the page 30 minutes before the webcast is scheduled to begin and you’ll be given access.

There you have it, the Q1 2022 earnings report from Microsoft. What did you think of the first quarter earnings from the world’s second largest company? Are you planning on tuning into the webcast to hear more? Be sure to follow our Microsoft topic page for more news and financial reporting from the gaming and tech giant.