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Microsoft (MSFT) Q3 2023 earnings results beat both EPS & revenue expectations

Revenue is up 7 percent, with EPS up 10 percent according to the earning report for Q3 2023.

Morgan Shaver

April 25, 2023 1:37 PM

Charles Platiau, Reuters

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Microsoft (MSFT) shared its earnings results for Q3 2023, and included in the report are details on how it beat on both EPS and revenue expectations. The EPS estimate was $2.23 per share, with whisper EPS at $2.26 per share. The actual EPS came in at $2.45 per share, above both estimates and up 10 percent.

For revenue, estimates placed it at $52.03 billion, with the actual revenue reported at $52.9 billion up 7 percent, with operating income similarly up at $22.4 billion at an increase of 10 percent. Additionally, net income was reported at $18.3 billion, up 9 percent. While these results are good, one of the highlights of the earnings report centered around Microsoft Cloud revenue which is reflected as being up 22 percent year-over-year.

“Focused execution by our sales teams and partners in this dynamic environment resulted in Microsoft Cloud revenue of $28.5 billion, up 22% (up 25% in constant currency) year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.

Elsewhere in the earnings report, further increases were seen with Productivity and Business Processes up 11 percent, including Office Commercial products and cloud services revenue up 13 percent, with LinkedIn revenue up 8 percent. Intelligent Cloud revenue increased 16 percent, with Azure and other cloud services driving revenue growth up 27 percent.

Personal Computing revenue was down 9 percent including Windows OEM revenue decreasing 28 percent and devices revenue decreasing 30 percent. With that being said, Windows Commercial products and cloud services revenue increased 14 percent, with Xbox content and services revenue having increased by 3 percent. Microsoft notes towards the end of its report that it “returned $9.7 billion to shareholders in the form of share repurchases and dividends in the third quarter of fiscal year 2023.”

For more on Microsoft’s (MSFT) performance in Q3 2023, be sure to look over the full earnings report. For more financial news, brush up on some of our previous coverage, including how you can listen to the Microsoft (MSFT) Q3 2023 earnings call today, and how Google (GOOGL) reported $6.69 billion in ad revenue for YouTube in Q1 2023.

Morgan Shaver

Senior Editor

Morgan is a writer from the frozen wastelands of Maine who enjoys metal music, kpop, horror, and indie games. They're also a Tetris fanatic who's fiercely competitive in games like Tetris 99... and all games in general. But mostly Tetris. You can follow Morgan on Twitter @Author_MShaver.