Microsoft Q1 Earnings Highlights: AI, Cloud Power Double Beat - 'Strong Start To The Fiscal Year'

Technology giant Microsoft Corporation (NASDAQ:MSFT) reported first-quarter financial results on Wednesday after market close.Here are the key highlights.Q1 Results: Microsoft reported first-quarter revenue of $77.7 billion, up 18% year-over-year. The revenue beat the Street consensus estimate of $75.3 billion, according to Benzinga Pro data.The company reported quarterly earnings per share of $4.13, beating the Street’s estimate of $3.67.Here’s a look at Microsoft’s revenue by reporting segment: Productivity and Business Processes: $33.0 billion, +17% year-over-year Intelligent Cloud: $30.9 billion, +28% year-over-year More Personal Computing: $13.8 billion, +4% year-over-year Overall Microsoft Cloud revenue was $49.1 billion in the quarter, up 26%. The company said the remaining performance obligation for Microsoft Cloud was $392 billion, up 51% year-over-year.Microsoft 365 Commercial cloud revenue was up 17% year-over-year, while Microsoft 365 Consumer cloud revenue was up 26% year-over-year.Azure and other cloud services revenue was up 40% year-over-year in the quarter.The company said Xbox content and services revenue rose 1% year over year.Cloud and AI were major themes for the company's growth for the quarter."Our planet-scale cloud and AI factory, together with Copilots across high volume domains, is driving broad diffusion and real-world impact," Microsoft CEO Satya Nadella said. "It's why we continue to increase our investments in AI across both capital and talent to meet the massive opportunity ahead."Microsoft Chief Financial Officer Amy Hood said this was "a strong start to the fiscal year," with company expectations for revenue, operating income and earnings per share beat."Continued strength in the Microsoft Cloud reflects the growing customer demand for our differentiated platform," Hood said.Read Also: Microsoft Q1 Preview: With 2 ‘Near-Term Monopolies,’ Analyst Says Outperformance To ContinueWhat's Next: Microsoft will provide forward-looking guidance during its earnings conference call, which can be viewed below.MSFT Price Action: Microsoft stock is down 3% to $525.00 in after-hours trading on Wednesday, versus a 52-week trading range of $344.79 to $555.45. Magnificent 7 Market Cap Tops $22 Trillion – And Nvidia Just Got Bigger Than Japan Photo: Shutterstock