Microsoft Reports Sustained Growth Mostly Driven by Cloud Services

Microsoft released its financial results for the third quarter of 2022. The company again reported a double-digit growth with revenues reaching $49.4 billion (up 18% compared to the same period in the previous year) and a net income of $16.7 billion (an increase of 8%). Operating income was $20.4 billion reflecting a 19% increase year-over-year.

Microsoft noted that the results were mostly influenced by the growth of the cloud technologies segment including server products and accompanying services (up 29%), Azure (up 46%), and Microsoft Cloud (up 32%).

Microsoft gaming revenue reached $3.74 billion reflecting a growth of 6% compared to 2021. Xbox content and services accounted for 81% of revenue, and hardware accounted for 19%. Xbox hardware revenue increased by 14%, while games and services revenue grew by 4% driven by Game Pass and titles from Xbox Game Studios companies.

"Going forward, digital technology will be the key input that powers the world’s economic output," chairman and CEO of Microsoft Satya Nadella said. "Across the tech stack, we are expanding our opportunity and taking share as we help customers differentiate, build resilience, and do more with less."

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