Microsoft FY2022 Q3 Earnings Summary:
Revenue rose 18.4% to $49.36B, operating income increased 19.5% to $20.36B, and net income grew 8.2% to $16.73B.
Productivity and Business Processes revenue was $15.79B, up 17% year over year. Operating income was $7.18B, up 19% year over year. Office revenue was approximately $11.17B, up 11% year over year. The Office E3-to-E5 migration is just beginning, implying significant ARPU upside. LinkedIn revenue was $3.44B, up 34% year over year, reaching 830M users. Dynamics revenue was $1.18B, up 22% year over year. Power Platform trailing-twelve-month revenue exceeded $2B, up 72% year over year.
Intelligent Cloud revenue was $19.05B, up 26% year over year. Operating income was $8.28B, up 29%. Azure revenue was approximately $11.37B, up 46%, and the number of Azure deals above $100M doubled. Azure ML monthly inference requests grew 86%; Cosmos DB and Synapse data volume doubled; Azure Gaming revenue grew 66% in the first three fiscal quarters. Server revenue was $5.55B, up 4%.
More Personal Computing revenue was $14.52B, up 11% year over year. Operating income was $4.9B, up 7% year over year. Windows revenue was approximately $6.29B, up 10% year over year. Gaming revenue was $3.75B, up 6% year over year. Xbox gained share for two consecutive quarters; 10M users have tried xCloud; XGP user engagement grew 45% year over year on a trailing-twelve-month basis. Search advertising revenue was $2.78B, up 23% year over year. Surface revenue was $1.7B, up 13% year over year.
Microsoft guided for FY2023 revenue and operating income to maintain double-digit growth.
Overall, this report was a stabilizing anchor for U.S. tech stocks amid turbulence. High inflation? No fear — enterprise digitalization will not stop. With IaaS + PaaS + SaaS attributes, Microsoft's earnings visibility and stability are not to be underestimated.
*All segment revenue figures above are estimates.