Earnings Release FY24 Q3
Performance
Revenue increased $9.0 billion or 17% driven by growth across each of our segments. Intelligent Cloud revenue increased driven by Azure. More Personal Computing revenue increased driven by Gaming. Productivity and Business Processes revenue increased driven by Office 365 Commercial.
Cost of revenue increased $2.4 billion or 15% driven by growth in Microsoft Cloud and Gaming.
Gross margin increased $6.6 billion or 18% driven by growth across each of our segments.
• Gross margin percentage increased slightly. Excluding the impact of the prior year change in accounting estimate for the useful lives of our server and network equipment, gross margin percentage increased 1 point driven by improvement in More Personal Computing.
• Microsoft Cloud gross margin percentage decreased slightly to 72%. Excluding the impact of the change in accounting estimate, Microsoft Cloud gross margin percentage increased slightly driven by improvements in Azure and Office 365 Commercial, inclusive of scaling our AI infrastructure, offset in part by sales mix shift to Azure.
Operating expenses increased $1.4 billion or 10% driven by Gaming, with 9 points of growth from the Activision Blizzard acquisition.
Operating income increased $5.2 billion or 23% driven by growth across each of our segments.
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Information contained in these documents is current as of the earnings date, and not restated for new accounting standards
Earnings Release Pages
Microsoft Corp (MSFT)
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