Microsoft reports a strong fiscal first quarter, but Azure’s growth rate continues to decline
The company’s revenue for the first quarter of the fiscal year rose 14% year-over-year to $33.1 billion. Net income increased 21% to $10.7 billion, or $1.38 per share.
Revenue from Microsoft’s Productivity and Business Processes segment, which includes its Office products and LinkedIn, grew 13% to $11.1 billion. LinkedIn’s revenue increased by 25%.
Meanwhile, its Intelligent Cloud segment’s revenue increased 27% to $10.8 billion, with revenue from server products and cloud services growing 30%. The company said Azure’s revenue grew by 59%, but that represents a decline in growth rate that began a year ago, when Azure clocked quarterly growth of 76%. The rate has fallen more since then, with today’s report representing a drop from the 64% growth reported in the previous quarter.
Revenue from Microsoft’s personal computing segment grew 4% to $11.1 billion.
The company said it expects second-quarter revenue to be in the range of $35.15 billion to $35.95 billion.