Microsoft 2024 Q3: Earnings outperform with Azure growth steady

Microsoft reported Q3 2024 earnings per share of $2.94 on revenue of $61.9 billion, exceeding analyst estimates.

In announcing the results, CEO Satya Nadella highlighted the emergence of the company’s AI offerings. 

“Microsoft Copilot and Copilot stack are orchestrating a new era of AI transformation, driving better business outcomes across every role and industry," he stated.

Microsoft Cloud revenue was $35.1 billion, up 23% year-over-year, according to CFO Amy Hood. Business highlights announced by the company include: 

• Revenue in Intelligent Cloud was $26.7 billion and increased 21%. Azure and other cloud services revenue grew by 31%. Last quarter, revenue in Intelligent Cloud was $25.9 billion with Azure and other cloud service revenue growing 30%.
• Dynamics products and cloud services revenue increased 19%, driven by Dynamics 365 revenue growth of 23%. Last quarter, this segment increased 21% with Dynamics 365 revenue growth of 27%.
• Office Commercial products and cloud services revenue increased this quarter by 13%, driven by Office 365 Commercial revenue growth of 15%

In their earnings call, Nadella shared new growth figures for Power Platform: 

• "[O]ver 330,000 organizations—including over half of the Fortune 100—have used AI-powered capabilities in Power Platform."
• "Power Apps now has over 25 million monthly active users, up over 40% year-over-year."

On Dynamics 365 performance, Hood stated in the earnings call that the suite delivered "better-than-expected new business, though bookings growth remains moderated."

Last quarter, Microsoft reported earnings per share of $2.93 on revenue of $62.0 billion, exceeding analyst estimates.

A year ago, Microsoft reported revenue of $52.9 billion, with net income of $18.3 billion and earnings of $2.45 per share, beating average analyst estimates.