Microsoft Corporation Q3 FY2022 Earnings Call
· Earnings call transcript and AI-powered summary
Microsoft Fiscal Q3 2022 Earnings Summary
Overview
- Record third quarter driven by strong Microsoft Cloud revenue of $23 billion, up 32% year-over-year.
- Total revenue reached $49.4 billion, up 18% (21% in constant currency) compared to Q3 FY2021.
- EPS was $2.22, up 14% (18% in constant currency) compared to the prior year, adjusted for previous tax effects.
- Commercial Cloud revenue grew 32% to $23.4 billion; gross margins slightly improved excluding accounting changes.
- Key headwinds included FX impacts, the Nuance acquisition, and suspension of sales in Russia due to the Ukraine war.
Business Segment Highlights
Intelligent Cloud
- Revenue: $19.1 billion, up 26% (29% in constant currency).
- Azure and Other Cloud Services: growth of 46% (49% in constant currency), faster than expected.
- Server products and cloud services revenue grew 29% (32% in constant currency).
- Nuance contribution was limited but added four weeks of results.
- Tier-1 workload migrations increased, with major customers like Boeing, Kraft Heinz, Blackrock, and Lufthansa expanding commitments.
Productivity & Business Processes
- Revenue: $15.8 billion, up 17% (19% in constant currency).
- Office 365 Commercial revenue: up 17% (20% in constant currency).
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