Microsoft reported first-quarter revenue of $77.7bn ($75.3bn expected), up 17% when ignoring currency moves. Growth was broad-based, including 39% in Azure (c.41% expected).
Operating profit was $38.0bn, up 22% in constant currency, driven by strong revenue growth and margin expansion.
Free cash flow rose 33% to $25.7bn, with net cash including lease liabilities at $41.5bn. Over the quarter, the company returned $10.7bn in cash to shareholders.
Revenue in the coming quarter is guided to land between $79.5–80.6bn, with Azure expected to grow at 37% when ignoring currency moves.
The shares fell 2.9% in pre-market trading.
Our view
HL view to follow.
Microsoft key facts
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