Browse Prior Earnings Releases:
Earnings Release FY22 Q1
Intelligent Cloud
Revenue increased $4.0 billion or 31%.
• Server products and cloud services revenue increased $3.9 billion or 35% driven by Azure and other cloud services. Azure and other cloud services revenue grew 50% driven by growth in our consumption-based services. Server products revenue increased 14% driven by hybrid solutions, including Windows Server and SQL Server running in multi-cloud environments, with an increase in multi-year agreements that carry higher in-quarter revenue recognition, on a low prior year comparable impacted by a slowdown in transactional licensing.
• Enterprise Services revenue increased $154 million or 9% driven by growth in Microsoft Consulting Services and Enterprise Support Services.
Operating income increased $2.1 billion or 39%.
• Gross margin increased $2.6 billion or 28% driven by growth in Azure and other cloud services. Gross margin percentage decreased. Excluding the impact of the change in accounting estimate, gross margin percentage increased 2 points, driven by gross margin percentage improvement in Azure and other cloud services, offset in part by sales mix shift to Azure and other cloud services.
• Operating expenses increased $496 million or 13% driven by investments in Azure and other cloud services.
Revenue, gross margin, and operating income each included a favorable foreign currency impact of 2%.
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Information contained in these documents is current as of the earnings date, and not restated for new accounting standards