Microsoft reported its earnings for the first fiscal quarter ended September 30, with revenue coming in at $92.3 billion, up 19% from a year earlier. Xbox saw a decline of 2% in the quarter, and Xbox hardware sales fell 14%.
The big tech company reported net income was $36.6 billion, or $4.92 a diluted share, in the quarter, up 32% on a GAAP basis and $4.89 on a non-GAAP basis. For the quarter, Wall Street expected earnings per share of $4.27 on revenue of $90.6 billion, according to Bloomberg analyst consensus estimates. That compared to EPS of $4.13 and revenue of $77.6 billion the company saw in the same period last year.
Devices and Consumer includes Microsoft’s search and advertising businesses, Xbox, and Windows OEM and devices. The company said Xbox content and services saw a drop of 2% in the quarter (1% in constant currency compared).
Non-GAAP results exclude the impact from investments in OpenAI. The results come a day after Microsoft offered 60,000 buyouts to employees, about a quarter of its staff. Clearly, AI is having an impact on the company.
“We are delivering greater capability, choice, control, and cost efficiency for customers across our entire stack,” said Satya Nadella, chairman and chief executive officer of Microsoft. “By helping organizations build and own their own intelligence, and earning trust through agent safety and security, we are translating our innovation into growing adoption and real-world impact across every industry.”
9 billion, with growth accelerating to 30% (up 31% in constant currency) year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.
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