Microsoft shares jumped by about 5% during trading after the close of Tuesday’s session, following the release of the American company’s business results for the first fiscal quarter of 2024.
The company's earnings per share amounted to $2.99 per share, compared to $2.65 that the markets had expected earlier, and revenues were recorded at $56.52 billion, compared to expectations of $54.50 billion.
Revenues increased by 13% year-over-year in the first fiscal quarter, while net income reached $22.29 billion, an increase of 27%.
The company's revenues from cloud computing activities amounted to $24.26 billion, an increase of 19% and higher than expectations of $23.49 billion, and the public cloud unit includes Azure, SQL Server, Windows Server, Visual Studio, Nuance, and GitHub.
Revenues from Azure services jumped by 29% over the past three months, exceeding expectations of 26% growth.
The company's CEO, Satya Nadella, said that Microsoft continues to help customers use the Microsoft Cloud to get the most value from their digital spending and increase operational leverage.
Microsoft's revenues from its production and business operations unit amounted to approximately $18.59 billion, an increase of 13% and higher than expectations of $18.19 billion. This module contains subscriptions to Microsoft 365 apps, LinkedIn, and Dynamics Enterprise.
The personal computing sector contributed to enhancing Microsoft's revenues, as it includes Windows, Xbox, Bing, and Surface, bringing its revenues to $13.67 billion. This was 3% higher and above expectations of $12.85 billion
Earlier this month, Microsoft completed its $68.7 billion acquisition of video game company Activision Blizzard. Although Activision was not included in Microsoft's first fiscal quarter results, it will partially impact the following quarter's earnings.
