Browse Prior Earnings Releases:
Earnings Release FY21 Q1
Intelligent Cloud
Revenue increased $2.1 billion or 20%.
• Server products and cloud services revenue increased $2.0 billion or 22%, driven by Azure. Azure revenue grew 48%, due to growth in our consumption-based services. Server products revenue decreased 1% on a strong prior year comparable, with continued weakness in transactional licensing.
• Enterprise Services revenue increased $92 million or 6%, driven by growth in Premier Support Services.
Operating income increased $1.5 billion or 39%.
• Gross margin increased $1.9 billion or 26%, driven by growth in server products and cloud services and the change in estimated useful lives of our server and network equipment. Gross margin percentage increased with the change in estimated useful lives of our server and network equipment. Excluding this impact, gross margin percentage decreased slightly, driven by sales mix shift to Azure, offset in part by gross margin percentage improvement in Azure.
• Operating expenses increased $369 million or 10%, driven by investments in Azure.
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Information contained in these documents is current as of the earnings date, and not restated for new accounting standards