The Redmond, Wash., technology giant’s fiscal first-quarter 2022 revenue rose by 22% to $45.32 billion for the period ending Sept. 30, compared to the same period a year ago. Analysts surveyed by Refinitiv had forecasted $43.97 billion for the quarter.
The company generated $17.21 billion of net income with earnings per share of $2.27, beating analyst estimates of $2.07.
Shares of Microsoft jumped by 1.6% to $315.10 after hours. The stock had risen 0.6% in the regular session.
“Digital technology is a deflationary force in an inflationary economy. Businesses – small and large – can improve productivity and the affordability of their products and services by building tech intensity,” Microsoft CEO Satya Nadella said in a statement. “The Microsoft Cloud delivers the end-to-end platforms and tools organizations need to navigate this time of transition and change.”
The company in a Tuesday statement credited its cloud business as a key to its strong quarterly performance.
“We delivered a strong start to the fiscal year with our Microsoft Cloud generating $20.7 billion in revenue for the quarter, up 36% year over year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.
Revenue in Microsoft’s intelligent cloud increased 31% to $17 billion. In addition to strong cloud services results, the company noted that its revenue from productivity and business processes increased 22% to $15 billion.
Microsoft also reported that it returned $10.9 billion to shareholders in the form of share repurchases and dividends in the first quarter of fiscal year 2022, an increase of 14% compared to the first quarter of fiscal year 2021.