Microsoft Reports 16% Revenue Growth, Net Income Increase to $24.67 Billion in Latest Quarter

As of September 30, 2024, Microsoft Corporation reported total assets of $523,013 million, an increase from $512,163 million as of June 30, 2024. Current assets decreased to $149,926 million from $159,734 million, while cash and cash equivalents rose to $20,840 million from $18,315 million. Total cash, cash equivalents, and short-term investments increased to $78,428 million, up from $75,543 million. Accounts receivable saw a significant decline, dropping to $44,148 million from $56,924 million.

Total current liabilities decreased to $115,200 million from $125,286 million, contributing to an increase in total stockholders’ equity to $287,723 million, up from $268,477 million. Retained earnings also rose to $188,929 million from $173,144 million.

For the three months ended September 30, 2024, Microsoft reported revenue of $65,585 million, a 16% increase from $56,517 million in the same period of 2023. Gross margin increased to $45,486 million, up from $40,215 million, while operating income rose to $30,552 million from $26,895 million. Net income for the period was $24,667 million, reflecting an 11% growth from $22,291 million in the prior year. Diluted earnings per share increased to $3.30 from $2.99.

The Intelligent Cloud segment reported revenue of $24,092 million, a 20% increase driven by Azure growth. The Productivity and Business Processes segment saw revenue rise to $28,317 million, a 12% increase, while the More Personal Computing segment's revenue increased to $13,176 million, a 17% rise, largely due to gaming growth, including a 61% increase in Xbox content and services revenue attributed to the acquisition of Activision Blizzard, Inc. for $75.4 billion, completed in October 2023.

Operating expenses rose by 12% to $28,934 million, primarily due to investments in gaming and cloud engineering, with a notable impact from the Activision acquisition. Research and development expenses increased by 13% to $7.6 billion, while sales and marketing expenses rose by 10% to $5.8 billion.

Microsoft's cash from operations for the quarter increased by $3.6 billion to $34.2 billion, driven by higher cash received from customers. The company repurchased 7 million shares for $2.8 billion during the quarter, with $7.5 billion remaining in its $60 billion share repurchase program. Dividends declared totaled $6.2 billion, up from $5.6 billion in the same period last year.

The effective tax rate for the quarter was 19%, up from 18% in the previous year, attributed to tax law changes affecting foreign tax credit regulations. Microsoft continues to focus on expanding its cloud and AI infrastructure, anticipating increased capital expenditures to support growth in these areas.