Microsoft Meets Expectations, Google's Alphabet Disappoints in Q1 Earnings
Google Cloud is quickly growing, but is still unprofitable.
In its latest quarterly earnings report, Microsoft says cloud services drove revenue increases, while Alphabet posted higher revenue, but didn’t meet Wall Street expectations.
Microsoft posted its fiscal Q3 2022 earnings and Alphabet, Google’s parent company, reported its Q1 earnings on Tuesday.
Microsoft saw revenue jump 18%, to $49.4 billion, and profit reached $16.7 billion, up 8%. Alphabet benefitted from Google Cloud’s strength as its revenue increased 23%, to $68 billion, and profit exceeded $16 billion.
Satya Nadella is Microsoft‘s chairman and CEO.
Microsoft’s Satya Nadella
“Going forward, digital technology will be the key input that powers the world’s economic output,” he said. “Across the tech stack, we are expanding our opportunity and taking share as we help customers differentiate, build resilience and do more with less.”
Sundar Pichai is CEO of Alphabet and Google.
Google’s Sundar Pichai
“Q1 saw strong growth in search and cloud, in particular, which are both helping people and businesses as the digital transformation continues,” he said. “We’ll keep investing in great products and services, and creating opportunities for partners and local communities around the world.”
Microsoft Beats Expectations
Microsoft beat expectations on the top and bottom lines, CNBC said. Its intelligent cloud segment, which contains Microsoft’s Azure public cloud for application hosting, along with SQL Server, Windows Server and enterprise services, generated more than $19 billion in revenue, up 26% compared to the year-ago quarter.
Revenue from Azure and other cloud services increased 46% in the quarter, compared to 46% growth in the prior quarter.
Microsoft’s productivity and business processes segment, which includes Office productivity software, LinkedIn and Dynamics, reported $16 billion in revenue in the quarter, up about 17%.
Amy Hood is Microsoft’s executive vice president and CFO.