Microsoft Corporation (MSFT) Bundle
An Overview of Microsoft Corporation (MSFT)
General Summary of Microsoft Corporation
Microsoft Corporation (MSFT), founded in 1975 by Bill Gates and Paul Allen, has evolved into one of the world's leading technology companies. Initially known for its software products, particularly the Windows operating system and Microsoft Office suite, Microsoft has diversified its offerings to include cloud computing, hardware, and various online services. As of 2024, Microsoft generates substantial revenue through its core products, including:
- Microsoft 365 (Commercial and Consumer)
- Azure cloud services
- Gaming (Xbox and associated services)
In the latest fiscal quarter ending September 30, 2024, Microsoft reported total revenue of $65.585 billion, up from $56.517 billion in the same period the previous year, reflecting a growth rate of 16%.
Company's Financial Performance in Latest Financial Reports
Microsoft's financial performance for the three months ended September 30, 2024, showcased significant growth across all business segments:
| Segment | Revenue (2024) | Revenue (2023) | Percentage Change |
|---|---|---|---|
| Productivity and Business Processes | $28.317 billion | $25.226 billion | 12% |
| Intelligent Cloud | $24.092 billion | $20.013 billion | 20% |
| More Personal Computing | $13.176 billion | $11.278 billion | 17% |
| Total | $65.585 billion | $56.517 billion | 16% |
Net income for the same period reached $24.667 billion, an increase from $22.291 billion in 2023, marking an 11% rise. The diluted earnings per share also rose to $3.30 from $2.99, reflecting a 10% increase.
Introduction to Microsoft as a Leader in the Industry
Microsoft stands as a leader in the technology industry, demonstrating resilience and adaptability in a rapidly changing market landscape. Its strategic investments in cloud computing, artificial intelligence, and gaming have positioned the company to capture significant market share and drive future growth. Notably, Microsoft's Azure platform has gained traction, contributing greatly to its Intelligent Cloud segment's revenue growth of 20% year-over-year. The company’s commitment to innovation and customer-centric solutions continues to solidify its status as an industry titan.
Mission Statement of Microsoft Corporation (MSFT)
Company's Mission Statement Overview
The mission statement of Microsoft Corporation (MSFT) is to empower every person and every organization on the planet to achieve more. This mission serves as a guiding principle for the company's long-term strategy and objectives, reflecting its commitment to innovation and inclusivity. As of 2024, Microsoft's mission statement emphasizes the importance of technology in enhancing productivity and fostering collaboration across diverse sectors.
Core Component 1: Empowering Individuals
Microsoft's mission to empower individuals focuses on providing tools and technologies that enhance personal productivity. This is exemplified through products like Microsoft 365, which saw a revenue increase of 13% year-over-year, amounting to $20.4 billion for the three months ended September 30, 2024 . The company reports a user base of over 84.4 million Microsoft 365 Consumer subscribers, reflecting a 10% increase .
Core Component 2: Supporting Organizations
The mission also targets organizations by delivering solutions designed to improve operational efficiency and strategic outcomes. For instance, the Intelligent Cloud segment, which includes Azure, reported a revenue surge of 20%, reaching $24.1 billion for the same period . Azure's revenue specifically grew by 33%, driven by increasing demand for cloud services and AI capabilities .
Core Component 3: Global Reach
Microsoft's commitment to global reach is evident in its diverse product offerings and international customer base. As of September 30, 2024, Microsoft's total revenue was $65.6 billion, a 16% increase compared to the previous year . The company operates in various regions, with the United States contributing approximately $33.9 billion and other countries generating $31.7 billion . This geographical diversity underscores Microsoft's mission to impact every corner of the globe.
| Segment | Revenue (in millions) | Year-over-Year Growth (%) |
|---|---|---|
| Productivity and Business Processes | $28,317 | 12% |
| Intelligent Cloud | $24,092 | 20% |
| More Personal Computing | $13,176 | 17% |
| Total Revenue | $65,585 | 16% |
Microsoft's focus on empowering individuals and organizations is further reinforced by its investment in research and development, which reached $7.5 billion, representing a 13% increase year-over-year . The company's mission statement is not just a declaration; it is reflected in its financial performance and strategic initiatives, aimed at fostering growth and innovation worldwide.
Vision Statement of Microsoft Corporation (MSFT)
Vision Statement of Microsoft Corporation
The vision statement of Microsoft Corporation emphasizes the company's commitment to empowering every person and organization on the planet to achieve more. This mission is underpinned by a focus on innovation, inclusivity, and sustainability, guiding the company's strategic direction and operational goals for 2024.
Empowerment Through Technology
Microsoft's vision is rooted in the belief that technology can empower individuals and organizations. This empowerment is reflected in the company's diverse product offerings, which aim to enhance productivity, creativity, and collaboration. For instance, Microsoft 365, which includes tools like Word, Excel, and Teams, has seen significant adoption, with over 84.4 million consumer subscribers as of September 30, 2024.
Commitment to Innovation
Innovation is a core component of Microsoft's vision. The company continues to invest heavily in research and development, with R&D expenses amounting to $7.5 billion for the three months ended September 30, 2024, representing a 13% increase compared to the same period in 2023. This commitment to innovation is evident in the growth of Microsoft Cloud revenue, which increased by 22% to $38.9 billion during the same period.
Sustainability and Inclusivity
Microsoft's vision also encompasses a strong commitment to sustainability and inclusivity. The company aims to be carbon negative by 2030, with initiatives focused on reducing its environmental impact across its operations. As part of its inclusivity efforts, Microsoft has developed programs to enhance accessibility in its products, ensuring that technology is available to all users regardless of their abilities.
Global Reach and Local Impact
Microsoft's vision extends globally while emphasizing local impact. The company generated $65.6 billion in revenue for the three months ended September 30, 2024, with significant contributions from various regions, including $33.9 billion from the United States and $31.7 billion from other countries. This global presence allows Microsoft to tailor its services to meet the diverse needs of different markets.
| Financial Metrics | Q1 FY 2025 | Q1 FY 2024 | Percentage Change |
|---|---|---|---|
| Revenue | $65.6 billion | $56.5 billion | 16% |
| Net Income | $24.7 billion | $22.3 billion | 11% |
| Diluted Earnings Per Share | $3.30 | $2.99 | 10% |
| Microsoft Cloud Revenue | $38.9 billion | $31.9 billion | 22% |
Driving Digital Transformation
Microsoft's vision includes driving digital transformation across industries. The company has been pivotal in providing cloud solutions that support businesses in their transition to digital-first operations. Azure, Microsoft's cloud computing service, experienced a remarkable 33% growth in revenue, driven by the increasing demand for cloud services.
Conclusion
Microsoft's vision statement encapsulates its commitment to leveraging technology for empowerment, innovation, and sustainability. The company's financial performance, strategic investments, and global outreach reflect its dedication to achieving this vision in 2024 and beyond.
Core Values of Microsoft Corporation (MSFT)
Core Value: Innovation
Microsoft Corporation emphasizes innovation as a core value, reflecting its commitment to creating new technologies and solutions that empower individuals and organizations.
In the first quarter of fiscal year 2025, Microsoft Cloud revenue increased to $38.9 billion, up from $31.9 billion in the previous year, showcasing significant growth driven by innovations in cloud services.
The company’s investment in research and development reached $7.5 billion during the same period, underscoring its focus on developing cutting-edge technologies.
Core Value: Diversity and Inclusion
Diversity and inclusion are integral to Microsoft’s corporate culture. The company aims to foster an inclusive environment where every employee can thrive.
As of September 2024, Microsoft reported that 47% of its global workforce identified as diverse, reflecting its ongoing commitment to diversity initiatives.
Additionally, Microsoft allocates substantial resources to training programs aimed at promoting diversity, which includes investments of $1 billion in initiatives that support underrepresented communities.
Core Value: Trustworthiness
Trust is a foundational value at Microsoft, focusing on building and maintaining customer confidence through transparency and ethical practices.
In 2024, Microsoft achieved an effective tax rate of 19%, demonstrating its commitment to responsible corporate governance and compliance.
The company has also committed to achieving 100% renewable energy for its global data centers by 2025, reinforcing its focus on sustainability and trust.
Core Value: Customer Obsession
Microsoft’s core value of customer obsession drives its product development and service delivery, ensuring that customer needs are prioritized in decision-making.
In the first quarter of fiscal year 2025, Microsoft 365 Commercial products and cloud services revenue increased by 13%, reflecting strong demand and customer satisfaction.
Moreover, Microsoft reported 84.4 million Microsoft 365 Consumer subscribers, marking a growth of 10% year-over-year, further illustrating its commitment to enhancing customer experiences.
Core Value: Social Responsibility
Microsoft is dedicated to social responsibility, focusing on initiatives that positively impact communities and the environment.
The company has pledged to be carbon negative by 2030, with plans to remove more carbon than it emits.
Microsoft also invested $1.5 billion in community initiatives and programs that support education and workforce development.
| Core Value | Key Initiatives | Financial Commitment |
|---|---|---|
| Innovation | Cloud services growth, R&D investment | $7.5 billion |
| Diversity and Inclusion | Diversity training programs | $1 billion |
| Trustworthiness | Tax compliance, renewable energy | 100% renewable energy by 2025 |
| Customer Obsession | Increasing subscriber base | Revenue growth of 13% |
| Social Responsibility | Carbon negative commitment | $1.5 billion in community initiatives |
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Article updated on 8 Nov 2024
Resources:
- Microsoft Corporation (MSFT) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Microsoft Corporation (MSFT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Microsoft Corporation (MSFT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.