MSFT FY 2023 Earnings Report — Microsoft Corporation Revenue & Financial Results | Market Cap Arena

Microsoft CorporationMSFT

FY 2023 Earnings

Reported July 27, 2023

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2023	Prior Q	FY 2022	QoQ Change	YoY Change
Revenue	$211.9B	—	$198.3B	—	6.9%
Op. Income	$88.5B	—	$83.4B	—	6.2%
Gross Margin	68.9%	—	68.4%	—	0.5pp
Net Margin	34.1%	—	36.7%	—	-2.5pp
EPS (Diluted)	$9.68	—	$9.65	—	0.3%
Free Cash Flow	$59.5B	—	$65.1B	—	-8.7%

Revenue Flow

Item	Amount
REVENUE	$211.9B
Cost of Revenue	$65.9B
GROSS PROFIT	$146.1B
R&D Expenses	$27.2B
Selling & Marketing	$22.8B
General & Administrative	$7.6B
SG&A Expenses	$30.3B
Other Expenses	$0
Operating Expenses	$57.5B
Cost & Expenses	$123.4B
OPERATING INCOME	$88.5B
Interest Income	$3.0B
Interest Expense	$2.0B
Other Income/Expenses	$788M
INCOME BEFORE TAX	$89.3B
Income Tax Expense	$16.9B
Net Income from Continuing Ops	$72.4B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$72.4B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$72.4B
D&A	$13.9B
EBIT	$91.3B
EBITDA	$105.1B
EPS	$10
EPS Diluted	$10

Income Statement

Item	Amount
REVENUE	$211.9B
Cost of Revenue	$65.9B
GROSS PROFIT	$146.1B
R&D Expenses	$27.2B
Selling & Marketing	$22.8B
General & Administrative	$7.6B
SG&A Expenses	$30.3B
Other Expenses	$0
Operating Expenses	$57.5B
Cost & Expenses	$123.4B
OPERATING INCOME	$88.5B
Interest Income	$3.0B
Interest Expense	$2.0B
Other Income/Expenses	$788M
INCOME BEFORE TAX	$89.3B
Income Tax Expense	$16.9B
Net Income from Continuing Ops	$72.4B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$72.4B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$72.4B
D&A	$13.9B
EBIT	$91.3B
EBITDA	$105.1B
EPS	$10
EPS Diluted	$10

Cash Flow Statement

Item	Amount
Net Income	$72.4B
Depreciation & Amortization	$13.9B
Stock-Based Compensation	$9.6B
Deferred Income Tax	-$6.1B
Other Non-Cash Items	$196M
Change in Working Capital	-$2.4B
OPERATING CASH FLOW	$87.6B
Capital Expenditure	-$28.1B
Acquisitions (Net)	-$1.7B
Purchases of Investments	-$37.7B
Sales/Maturities of Investments	$47.9B
Other Investing Activities	-$3.1B
NET CASH FROM INVESTING	-$22.7B
Net Debt Issuance	-$2.8B
Common Stock Repurchased	-$22.2B
Common Dividends Paid	-$19.8B
Other Financing Activities	-$1.0B
NET CASH FROM FINANCING	-$43.9B
FREE CASH FLOW	$59.5B
Net Change in Cash	$20.8B

Balance Sheet

Item	Amount
Cash & Equivalents	$34.7B
Short-Term Investments	$76.6B
Net Receivables	$48.7B
Inventory	$2.5B
Other Current Assets	$21.8B
TOTAL CURRENT ASSETS	$184.3B
PP&E (Net)	$110.0B
Goodwill	$67.9B
Intangible Assets	$9.4B
Long-Term Investments	$9.9B
Tax Assets	$0
Other Non-Current Assets	$30.6B
TOTAL NON-CURRENT ASSETS	$227.7B
TOTAL ASSETS	$412.0B
Account Payables	$18.1B
Short-Term Debt	$5.2B
Deferred Revenue	$50.9B
Other Current Liabilities	$22.1B
TOTAL CURRENT LIABILITIES	$104.1B
Long-Term Debt	$42.0B
Deferred Revenue NC	$2.9B
Deferred Tax Liabilities	$433M
Other Non-Current Liabilities	$27.7B
TOTAL NON-CURRENT LIABILITIES	$101.6B
TOTAL LIABILITIES	$205.8B
Common Stock	$93.7B
Additional Paid-In Capital	$0
Retained Earnings	$118.8B
Treasury Stock	$0
Accum. Other Comp. Income	-$6.3B
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$206.2B
Minority Interest	$0
TOTAL EQUITY	$206.2B
TOTAL LIABILITIES & EQUITY	$412.0B
Total Debt	$79.4B
Net Debt	$44.7B