Microsoft FY22 Q2 earnings: $51.7 billion in revenue, beating predictions [Updated]

Update January 25, 2022, at 6:25 p.m. ET: Comments from Microsoft's FY22 Q2 earnings call have been added to the finish of this study.

Microsoft's FY22 Q2 (fiscal yr 2022, quarter 2) results are in, and, as has become the usual for the tech behemothic, information technology made an extraordinarily large sum of money in its latest quarter. It accrued $51.7 billion in revenue, beating out Wall Street estimates for the umpteenth quarter in a row. Hither are the big takeaways from the FY22 Q2 report:

Revenue was $51.7 billion and increased 20%

Operating income was $22.2 billion and increased 24%

Net income was $18.8 billion and increased 21%

Diluted earnings per share was $2.48 and increased 22%

"Solid commercial execution, represented by potent bookings growth driven past long-term Azure commitments, increased Microsoft Cloud revenue to $22.i billion, up 32% yr over year," said EVP and CFO of Microsoft Amy Hood, reiterating just how vital Azure is to Microsoft'south overall strategy.

Deject, productivity, and computing gains

Productivity and Business organisation Processes revenue stayed strong with a xix% YoY jump made possible by $xv.9 billion in acquirement. Individual operations that combined to achieve the aforementioned total include:

Office Commercial products and deject services acquirement increased 14% driven by Office 365 Commercial revenue growth of 19%

Office Consumer products and cloud services revenue increased 15% and Microsoft 365 Consumer subscribers grew to 56.iv million

LinkedIn revenue increased 37% (up 36% in constant currency)

Dynamics products and cloud services revenue increased 29% driven by Dynamics 365 revenue growth of 45% (up 44% in constant currency)

LinkedIn continues to exercise well despite some troublesome news in October 2022, overcoming obstacles and maintaining growth.

Intelligent Cloud operations brought in $18.3 billion in acquirement, a 26% YoY increase. Within that space, cloud services and server products revenue shot up by 29% thanks to Azure.

More Personal Calculating also saw growth to the melody of 15% YoY with $17.5 billion. These were the big gains from that sector:

Windows OEM revenue increased 25%

Windows Commercial products and cloud services acquirement increased 13% (up fourteen% in constant currency)

Xbox content and services revenue increased x%

Search and news ad revenue excluding traffic acquisition costs increased 32%

Surface revenue increased viii%

As the above figures indicate, Surface and Windows both enjoyed specially strong figures. Similarly, Xbox content and services saw a healthy x% uptick, though games specifically grew by viii%. Starting time-party titles and Game Pass were, as expected, key pillars of the growth.

To put this quarter's gains in context, Microsoft managed to crush out non merely Wall Street's bets, just also its ain expectations as outlined during its FY22 Q1 earnings call. You tin can run into the total FY22 Q2 report via Microsoft'due south press release and accompanying slideshow, which detail more specifics for each private earnings category.

What's next

Later on Microsoft releases its quarterly written report, information technology holds an investor call, and so stay tuned for that. You can heed to it live at two:30 p.grand. PT / five:30 p.k. ET via the visitor'southward investor portal. Information technology's not always chock-full of information that's useful to the common tech enthusiast, but in one case in a while a gilt nugget will drop that'due south non in the earnings report, be information technology a detail most the state of Xbox operations or an interesting Microsoft Teams figure. If you want to know everything you tin about the company's trajectory and forecasts, you'll want to nourish the phone call.

Post-call news

Update: The call has taken identify. Here are the key remarks discussed regarding existing milestones and forward-looking statements for FY22 Q3.

Over 90% of Fortune 500 companies use Microsoft Teams, including Walmart which has chosen Teams for its small-scale army of over 2 million workers. More 1.iv billion PCs are running on Windows 10 and Windows 11, and Edge market share has grown. Border has empowered $800 million in savings via its coupons. Microsoft's Nuance acquisition is expected to shut in Q3.

Every bit for forrard-looking figures, some other strong quarter is expected in FY22 Q3. Consumer growth is anticipated to be in the high single digits, Dynamics growth is guesstimated to be somewhere in the mid-twenties (pct) range, and Azure acquirement growth should be up sequentially. $15.6-fifteen.85 billion in acquirement is expected for productivity business, while Intelligent Deject is estimated to bring in $xviii.75-19 billion, driven by Azure. Surface growth is forecast for the "mid-teens," while Windows OEM growth is expected to land in the high single digits. Gaming revenue should grow in the mid-unmarried digits, and consoles will continue to be impacted past supply chain dubiousness (that ways Xbox Series Ten).

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