Microsoft Announces Strong Third Quarter Results

Revenue Up 18%

Cloud Strength Drives Growth

REDMOND, Wash.--(BUSINESS WIRE)--Microsoft Corp. (Nasdaq "MSFT") today announced revenue of $50.1 billion for the third quarter of fiscal year 2023, an increase of 18% compared to the same period last year. The company's net income was $16.4 billion, up 16% year-over-year.

"Our cloud strength drove our third-quarter results, with Azure revenue growing 31% year-over-year," said Satya Nadella, Chairman and CEO of Microsoft. "We are seeing strong demand for our cloud services from both new and existing customers, as businesses continue to adopt cloud-based solutions to transform their operations.

Microsoft's cloud revenue was $25.7 billion for the quarter, up from $19.5 billion in the same period last year. Azure revenue grew 31% year-over-year to $11.9 billion. Server products and cloud services revenue grew 20% to $13.8 billion.

The company's other businesses also performed well during the quarter. Office revenue grew 7% to $15.3 billion, driven by strong growth in Office 365. Windows OEM revenue grew 7% to $5.6 billion, and Surface revenue grew 11% to $2.3 billion.

"We are pleased with our third-quarter results and the strong growth we are seeing across our business," said Amy Hood, EVP and CFO of Microsoft. "We remain focused on investing in our cloud platform and other growth areas, such as artificial intelligence and security, to drive long-term value for our shareholders."