October 26, 2021 – Microsoft Corp. today announced the following results for the quarter ended September 30, 2021, as compared to the corresponding period of last fiscal year:

• Revenue was $45.3 billion and increased 22%
• Operating income was $20.2 billion and increased 27%
• Net income was $20.5 billion GAAP and $17.2 billion non-GAAP, and increased 48% and 24%,respectively
• Diluted earnings per share was $2.71 GAAP and $2.27 non-GAAP, and increased 49% and 25%,respectively
• GAAP results include a $3.3 billion net income tax benefit explained in the Non-GAAP Definition section below

“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,” said Satya Nadella, chairman and chief executive officer of Microsoft. “The Microsoft Cloud delivers the end-to-end platforms and tools organizations need to navigate this time of transition and change.”

“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.

There is no going back to the digital adoption levels of two years ago. There is only going forward, and the Microsoft Cloud is the most trusted and comprehensive cloud to help our partners deliver on this unprecedented opportunity. pic.twitter.com/Md61DzsOJ9

– Satya Nadella (@satyanadella) July 14, 2021

Business Highlights

Revenue in Productivity and Business Processes  was $15.0 billion and increased 22%  (up 20% in constant currency), with the following business highlights:

• Office Commercial products and cloud services revenue increased 18% (up 16% in constant currency) driven by Office 365 Commercial revenue growth of 23% (up 21% in constant currency)
• Office Consumer products and cloud services revenue increased 10% (up 8% in constant currency) and Microsoft 365 Consumer subscribers increased to 54.1 million
• LinkedIn revenue increased 42% (up 39% in constant currency) driven by Marketing Solutions growth of 61% (up 59% in constant currency)
• Dynamics products and cloud services revenue increased 31% (up 29% in constant currency) driven by Dynamics 365 revenue growth of 48% (up 45% in constant currency)

Revenue in Intelligent Cloud was $17.0 billion and increased 31% (up 29% in constant currency), with the following business highlights:

• Server products and cloud services revenue increased 35% (up 33% in constant currency) driven by Azure and other cloud services revenue growth of 50% (up 48% in constant currency)

Revenue in More Personal Computing was $13.3 billion and increased 12% (up 11% in constant currency), with the following business highlights:

• Windows OEM revenue increased 10%
• Windows Commercial products and cloud services revenue increased 12% (up 10% in constant currency)
• Xbox content and services revenue increased 2% (relatively unchanged in constant currency)
• Search and news advertising revenue excluding traffic acquisition costs increased 40% (up 39% in constant currency)
• Surface revenue decreased 17% (down 19% in constant currency)

Microsoft 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.