Satya Nadella
Microsoft CEO Satya Nadella.
Getty

Microsoft reported fiscal first-quarter earnings on Tuesday, exceeding Wall Street revenue and profit expectations.

Here’s what the company reported:

  • Revenue: $37.2 billion (Wall Street expected $35.72 billion), compared to $33.1 billion in the same quarter last year.
  • Earnings: $1.82 per share, compared to analysts’ estimate of $1.54 per share.
  • Profit: $13.9 billion, up 30 percent compared to Q1 2019.

The company’s stock price remained mostly unchanged following the earnings release.

Microsoft’s overall commercial cloud business – which includes its Microsoft Azure cloud computing business, the Microsoft 365 suite of cloud software applications and other services – reached $15.2 billion in sales for the quarter, up 31% compared to the same quarter last year.

Microsoft doesn’t report revenue figures for Azure itself, but said revenue grew 48% year over year.

Investors typically pay close attention to growth of the company's cloud computing business, but there's also increasing interest in its Teams chat app. Microsoft Teams communication software landed a surge of users amid the pandemic, and the company recently signaled the product's growing importance for company leaders.

Microsoft also doesn't break out revenue specific to Teams, but said revenue for the overall "Productivity and Business Processes" segment – which also includes Office products for businesses and customers, LinkedIn revenue and Dynamics products and cloud services — reached $12.3 billion for the quarter, up 11% year over year.

Microsoft's "Intelligent Cloud" business, which includes Azure, server products, enterprise and cloud services, brought in $13 billion in revenue, up 20% compared to the same quarter last year.

And revenue for the business unit Microsoft calls "More Personal Computing division, which includes Windows, search, Xbox and Surface, was $11.8 billion, up 6% year over year.

Microsoft reported strong sales growth for Xbox and Surface devices, but the company doesn't report specific revenue figures for the products. Xbox revenue was up 30%, highlighting the boom in video gaming amid the pandemic, even as the company prepares to introduce two new models of Xbox in November. Surface revenue was up 37%.

"The next decade of economic performance for every business will be defined by the speed of their digital transformation," said Satya Nadella, chief executive officer of Microsoft. "We are innovating across our full modern tech stack to help our customers in every industry improve time to value, increase agility, and reduce costs."

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