"We are off to a strong start to the fiscal year, driven by the continued strength in Microsoft Cloud, which surpassed $31.8 billion in quarterly revenue, up 24%."
— Satya Nadella
03Detailed Report
MSFT
Microsoft Corporation
Period
Q1 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 14, 2026
Swipe to view all report sections
Executive Summary
Microsoft Corporation reported robust financial results for Q1 2024, with total revenue increasing by 13% year-over-year to $56.5 billion. This growth was primarily driven by the performance of Microsoft Cloud, which generated $31.8 billion in revenue, representing a 24% increase. The successful integration of AI functionalities across its product portfolio, particularly with products like Azure, Office 365, and GitHub Copilot, has positioned the company for sustainable long-term growth. Management expressed strong confidence in their strategy, citing effective expense management and ongoing demand for cloud services as core contributors to their positive outlook.
Key Performance Indicators
Revenue
Increasing
56.52B
QoQ: 0.58% | YoY: 12.76%
Gross Profit
Increasing
40.22B
71.16% margin
QoQ: 2.08% | YoY: 15.99%
Operating Income
Increasing
26.90B
QoQ: 10.89% | YoY: 24.99%
Net Income
Increasing
22.29B
QoQ: 11.01% | YoY: 26.97%
EPS
Increasing
3.00
QoQ: 11.11% | YoY: 27.66%
Revenue Trend
Margin Analysis
Financial Highlights
1. Total Revenue: $56.5 billion, up 13% YoY.
2. Cloud Revenue: $31.8 billion, up 24% YoY, indicating strong adoption of cloud products.
3. Gross Profit Margin: 71%, reflecting a slight year-over-year increase due to higher-margin product sales in Azure and Office 365.
4. Operating Income: $26.9 billion, up 25% YoY, with operating margins improving to 48%.
5. Net Income: $22.3 billion, representing a 27% increase YoY, maintaining a net profit margin of 39%.
6. Earnings Per Share (EPS): $2.99, up 27% YoY.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
56.52B
12.76%
0.58%
Gross Profit
40.22B
15.99%
2.08%
Operating Income
26.90B
24.99%
10.89%
Net Income
22.29B
26.97%
11.01%
EPS
3.00
27.66%
11.11%
Key Financial Ratios
Gross Profit Margin
Excellent
71.20%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Excellent
47.60%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Excellent
39.40%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Fair
5.00%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
10.10%
Return on equity is acceptable but below top-tier companies
Current Ratio
Healthy
1.66
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Moderate
0.39
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Growth
26.31x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
High Premium
10.63x
Very high premium suggests asset-light business model or lofty expectations
Management Insights Available for Members
Get exclusive access to management commentary, earnings call quotes, and forward guidance from company leadership.