Microsoft's revenue and market capitalization

  •   DEHOUI Lionel

Founded in 1975, Microsoft is an American multinational computer and microcomputer company based in the United States. It specialises in the development and marketing of software, operating systems and related hardware products. During the year 2021, the group once again took advantage of the Covid-19 pandemic to achieve an excellent level of activity. For the full year 2021, its revenue amounted to $168.09 billion. Here is a breakdown of the group's financial performance during the year and its current market capitalisation.

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Microsoft's revenue and market capitalization
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Strong performance in Q1-2021

For the first quarter of 2021, Microsoft's revenue reached $41.7 billion, up from $35.02 billion in the same period last year. This represents an increase of 19% year-on-year. This increase was driven by the strong performance of cloud services for businesses.

In addition, the Azure division saw its revenues increase by 50% compared to Q1-2020. The group's overall revenue from the Intelligent Cloud amounted to $15.1 billion. This is an increase of 22% year-on-year. Commercial cloud revenues increased by 33% in the quarter.

In addition, for the whole of Q1-2021, the software and operating systems giant recorded a net profit of $15.5 billion, compared to $10.75 billion in Q1-2020. This represents a 44% year-on-year increase.

In addition, it should be noted that the financial results for this quarter significantly exceeded the company's expectations. Also, at that time, following the release of the financial performance for that period, the company's market capitalisation approached $2 trillion.

 

Interesting results in the second quarter of 2021

For the entire second quarter of its 2021 fiscal year, Microsoft generated $43.1 billion in revenue, up from $36.9 billion a year earlier. This solid performance was driven in particular by tech and gaming.

Its Cloud business contributed to the strong growth of the company's activity over this period. Indeed, it generated revenues estimated at 14.6 billion dollars. The business unit generated $13.4 billion in revenue in the quarter.

For the whole of Q2-2021, the American firm posted a net profit of $15.5 billion. A year earlier (in Q2-2020), it was $11.6 billion, an increase of 33%.

 

Better results in Q3 2021

Microsoft's revenue increased significantly in the third quarter of 2021. It amounted to $49.4 billion over this period, compared with $37.2 billion in Q3 2020. It therefore grew by 18% year-on-year. This performance was driven in particular by strong demand for cloud services.

Revenues from servers and cloud services rose by 29% in the quarter. Microsoft Cloud generated an estimated $23.4 billion in revenue, an increase of 32%. The growth in the group's business in the quarter was also driven by the strong performance of Microsoft Azure.

This is Microsoft's remote computing platform. Its revenues grew by 46% over the whole of Q3-2021 as in the previous quarter.

 

Business growth in Q4 2021

For its final quarter of 2021, Microsoft reported revenue of $51.7 billion, up from $38.0 billion in 2020. This was 20% growth over the same period last year.

The Intelligent Cloud segment contributed to the increase in the group's business in the fourth quarter of 2021 with revenues of $18.3 billion. This was 26% higher than in Q4 2020 ($13.4 billion). This increase was driven by 29% growth in sales of server-related products and services.

These were supported by sales of Azure and other cloud services. For Q4-2021 as a whole, Productivity and Business Processes revenues were $15.9 billion, up from $11.8 billion in the same period a year earlier. This represents an increase of 19%.

The More Personal Computing segment grew by 15% to $17.5 billion in the quarter. As a reminder, in Q4-2020, revenues in this segment were $12.9 billion.

The company's net profit was $18.8 billion in Q4-2021, compared to $11.2 billion a year earlier. Earnings per share were $2.48. The group's operating income grew by 24% to $22.2 billion in Q4 2021.

 

About Microsoft's dividend and market capitalisation

Microsoft Group is one of the companies that pays dividends to its shareholders. For the past 18 years, it has continued this tradition. Here are the details of the dividends distributed in 2021 with their detachment date.

  • 0.62 per share: 17 November 2021
  • 0.56 per share: 18 August 2021
  • 0.56 per share: 19 May 2021
  • 0.56 per share: 17 February 2021.

In addition, Microsoft first went public in 1986. The company is listed on the US Nasdaq market. It is one of the companies that make up the Dow Jones stock index. In 2022 (in June), its market capitalisation is around 1,800 billion dollars.

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