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DYNAMICS GROWTH TO SLOW IN Q2 Featured

Dynamics revenue rose 22 percent in the first quarter ended September 30, over the corresponding period a year ago, 21 percent in constant currency. 

But Microsoft’s outlook for the December quarter forecasts slower growth. In this week’s earnings webcast, CFO Amy Hood said, “We expect revenue growth in the high teens driven by Dynamics 365.”  That is after a 21-percent rise for fiscal 2024. For the most recently ended quarter, Dynamics 365 revenue rose 28 percent, up 26 percent in constant currency. Hood also noted that gross margins improved in several businesses, including the Dynamics segment. Overall, Microsoft reported revenue for $56.5 million for the most recently ended period, up 13 percent over a year ago. Microsoft does not report revenue figures for Dynamics for quarters. In its form 10-K for 2023, it said Dynamics revenue was $5.44 billion for the year ended June 30.

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