Microsoft's Q1 Earnings Spotlight: Revenue Beat, EPS Jumps 27%, Rapid AI Infusion

Microsoft Corp MSFT reported first-quarter financial results Tuesday after the close. Here’s a rundown of the results and a look at what is driving shares higher after hours. 

Q3 Earnings: Microsoft’s fiscal first-quarter revenue increased 13% year-over-year to $56.5 billion, which beat the consensus estimate of $51.4 billion, according to Benzinga Pro. The tech giant reported quarterly earnings of $2.99 per share, up 27% on a year-over-year basis.

“Consistent execution by our sales teams and partners drove a strong start to the fiscal year,” said Amy Hood, executive vice president and CFO of Microsoft.

Productivity and Business revenue came in at $18.6 billion, up 13% year-over-year. Intelligent Cloud revenue grew 19% to $24.3 billion, and Personal Computing revenue was up 3% at $13.7 billion.

LinkedIn revenue was up 8%, Windows revenue increased 5%, and Xbox content and services revenue grew 13%. Overall, device revenue decreased 22% year-over-year. 

“We are rapidly infusing AI across every layer of the tech stack and for every role and business process to drive productivity gains for our customers,” said Satya Nadella, chairman and CEO of Microsoft.

The company said it expects capex to increase in the coming years to support growth in Cloud offerings & investments in AI infrastructure.

Microsoft noted that it returned $9.1 billion to shareholders in the quarter via share repurchases and dividends. 

Management will hold a conference call to discuss these results at 5:30 p.m. ET. The company is expected to give forward guidance on the call, but shares are already jumping on the better-than-expected results.

Check This Out: Trading Strategies For Microsoft Stock After Quarterly Earnings

MSFT Price Action: Microsoft shares were up 4.84% after hours at $346.64 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Microsoft.