Microsoft reports Q4 revenue up 12% YoY to $51.87B, net income up 2% YoY to $16.7B, Azure up 40% YoY, and LinkedIn up 26% YoY
REDMOND, Wash. — July 26, 2022 — Microsoft Corp. today announced the following results for the quarter ended June 30, 2022, as compared to the corresponding period of last fiscal year:
Microsoft - Investor Relations
Context & Ripple Effects
Microsoft’s prior Q4 report showed commercial cloud revenue growing 36%, while LinkedIn revenue grew 46%; this release keeps both businesses central to the company’s growth profile, even as overall growth slowed from the prior year’s faster Q4 expansion.
Later filings continue to foreground LinkedIn alongside Office Commercial and Dynamics, including the April 2023 quarterly update, indicating that Microsoft’s reported growth narrative broadened across enterprise software and professional networking rather than relying on one line item.
First-order effects
Microsoft closes the quarter with revenue growing faster than net income, while Azure’s 40% growth and LinkedIn’s 26% growth identify the company’s fastest-expanding named businesses in the release.
Azure and LinkedIn become more consequential operating metrics for Microsoft’s investors and customers as the company reports double-digit growth in each against slower companywide profit growth.
Second-order effects
Microsoft’s subsequent disclosures place Office Commercial, Dynamics and LinkedIn in the same set of closely watched commercial metrics, raising the importance of cross-selling and retention across its enterprise software portfolio.
LinkedIn’s continued inclusion in later quarterly disclosures, including the 2024 Q4 results, makes its revenue trajectory a recurring measure of Microsoft’s commercial-platform breadth.
Third-order effects
If Microsoft continues to sustain growth across cloud infrastructure, productivity software and LinkedIn, its financial story shifts toward a portfolio of connected commercial services rather than dependence on a single product category.
The pattern points to enterprise software vendors being judged increasingly on the durability and breadth of recurring business platforms, with quarterly segment disclosures serving as the evidence.
The trend: Microsoft’s reporting trajectory reflects a broader shift toward diversified commercial platforms in which cloud, workplace software and professional-network services reinforce the company’s growth base.
Microsoft's @satyanadella says the company has “more datacenter regions than any other provider, and we'll launch 10 regions over the next year.” #MSFT 1/?
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Shocking no one - with Microsoft and Google “missing” their earnings according to Wall St - the period of insane YoY growth has come to an end. Both companies had Net Income of $16b-ish ...they are healthy
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My sense is that the growth in hiring for employees that use @Microsoft products in the back half of this year will decline slightly, which will have a negative impact on growth rates.
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Microsoft CEO @satyanadella comments on Xbox fiscal Q4, 2022: • Xbox market leader for next-gen consoles in NA for 3 quarters in a row • 4 million people streamed Fortnite on Xbox Cloud Gaming https://www.theverge.com/... https://twitter.com/...
Xbox Gaming Results from Microsoft FY22 Q4 • Gaming Revenue declined 7% • Content and Services Revenue declined 6% due to lower engagement hours and monetization in 3rd and 1st party content • Xbox Hardware Revenue declined 11% • Game Pass Subscribers Continue to Grow https://twi…