It's been the case for a good while now. Microsoft's strong financial results are heavily reliant on the cloud side of its business, and the most recent quarterly results are no exception. Of the total $45.3 billion revenue recorded, 17.0 was from the segment 'Intelligent Cloud' - the highest Q1 figure so far, which translated to $7.6 billion of operating income.
After strong ends to the financial year, revenue and operating income from the cloud traditionally takes a dip in Q1 for Microsoft. FY 2022 is no exception to this, but the record figures posted in Q4 2021 of $17.4 and $7.8 billion are only marginally above this most recent performance.
Satya Nadella, Microsoft chairman and chief executive officer commented on the results: “Digital technology is a deflationary force in an inflationary economy. Businesses – small and large – can improve productivity and the affordability of their products and services by building tech intensity. The Microsoft Cloud delivers the end-to-end platforms and tools organizations need to navigate this time of transition and change.”