Key Financial Insights from Major Tech Earnings
Amazon (NASDAQ: AMZN) and Microsoft (NASDAQ: MSFT) reported their Q1 earnings on April 29, 2023. Amazon’s total revenue reached $181.5 billion, while Microsoft reported $82.9 billion. Despite Microsoft achieving a net profit margin of 38.4%, Amazon’s margin of 16.7% marked its highest in company history. Year-to-date, Amazon’s stock has risen approximately 20%, while Microsoft’s has declined over 10%.
Amazon Web Services (AWS) saw revenue growth of 28% year-over-year, while Microsoft Cloud revenue grew by 29% during Q3 of its fiscal year 2026, ending March 31. However, AWS is gaining market share and accelerating faster than Microsoft Cloud, which has remained in the low-to-mid-20% growth range for years.
A significant driver of Amazon’s growth has been its high-margin advertising business, which rose 24% year-over-year. In comparison, Microsoft recorded a year-over-year growth of 17% in its productivity and business processes segment. The contrasting profit trajectories and growth metrics suggest a shifting landscape in the tech sector.
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