Microsoft's Revenue Increased by 11% in Q1 2023

Microsoft has released its financial report for the first quarter of the fiscal year 2023 (from July 1 to September 30).

According to the report, the tech giant's revenue increased by 11% compared to the same period in the previous year reaching $50.1 billion. Operating income saw a 6% growth and amounted to $21.5 billion, while net income fell by 14% to $17.6 billion.

Revenues from the Productivity and Business Processes segment, which contains Microsoft 365 productivity software subscriptions as well as LinkedIn and Dynamics, increased by 9% reaching $16.5 billion. The company's Intelligent Cloud – this segment includes the Azure public cloud, Windows Server, SQL Server, Nuance, and Enterprise Services – totaled $20.3 billion (a 20% increase compared to the previous year).

Meanwhile, the More Personal Computing business segment, which, among others, includes Windows and Xbox, saw a slight decrease – its revenues fell by 3% to $13.3 billion. The global decline in demand for PCs apparently affected the segment's results – the company's revenue from Windows OEM licenses fell by 15% year over year.

As for the gaming division, according to the company's earnings call, its revenue saw a slight increase and was up 4% in constant currency. Xbox hardware revenue grew by 13% due to increased console shipments and rising prices.

At the same time, revenues from Xbox content and services were down 3% year over year, with Microsoft attributing this decrease to declines in both first-party and third-party content where the company "had lower engagement hours and higher monetization." Microsoft, however, noted that this decrease was partly offset by growth in Xbox Game Pass subscriptions.

You can find Microsoft's financial report for Q1 2023 here. Also, don't forget to join our Reddit page and our Telegram channel, follow us on Instagram and Twitter, where we share breakdowns, the latest news, awesome artworks, and more.