Earnings Release FY23 Q3
Intelligent Cloud
Revenue increased $3.1 billion or 16%.
• Server products and cloud services revenue increased $3.0 billion or 17% driven by Azure and other cloud services. Azure and other cloud services revenue grew 27% driven by growth in our consumption-based services. Server products revenue decreased 2%.
• Enterprise Services revenue increased $116 million or 6% driven by growth in Enterprise Support Services, offset in part by a decline in Microsoft Consulting Services.
Operating income increased $1.1 billion or 13%.
• Gross margin increased $2.0 billion or 15% driven by growth in Azure and other cloud services and the change in accounting estimate. Gross margin percentage decreased slightly. Excluding the impact of the change in accounting estimate, gross margin percentage decreased 3 points driven by sales mix shift to Azure and other cloud services and reductions in Azure and other cloud services.
• Operating expenses increased $937 million or 19% driven by investments in Azure and 3 points of growth from the Nuance acquisition.
Revenue, gross margin, and operating income included an unfavorable foreign currency impact of 3%, 3%, and 4%, respectively.
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Information contained in these documents is current as of the earnings date, and not restated for new accounting standards
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Microsoft Corp (MSFT)
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