Microsoft has released its FY18 Q2 earnings report, revealing another strong quarter with the cloud business still the number one cash cow for the firm.

Revenue for the quarter was $28.9 billion, an increase of 12% year-over-year, while operating income grew 10% to reach $8.7 billion. The net income was $7.5 billion.

In terms of the divisions that performed strongly during the quarter, commercial could revenue posted a growth of no less than 56% to $5.3 billion, with Azure itself recording a revenue increase of no less than 98%.

The Productivity and Business Processes posted a 25% revenue increase to $9 billion, and the Office commercial products and cloud services grew 10%. The productivity suite business also performed very well in the consumer market with an increase of 12% and the total number of Office 365 subscribers reaching 29.2 million.

Worth noting is that LinkedIn is also becoming one of Microsoft’s money-making engines, as it accounted for no less than $1.3 billion of the revenue recorded by the entire unit.

Surface up just 1%

The More Personal Computing business increased only 2% to $12.2 billion, and partially responsible is the more or less slow performance of the Surface division, which increased revenue by 1%. This is most likely the effect of new Surface models launching in November, and more substantial growth is expected in the next quarter.

Windows OEM revenue increased 4%, while gaming revenue also went up 8%, with Microsoft saying that the Xbox One X launch was the main catalyst for the growth. Search advertising revenue recorded a boost of 15%.

It goes without saying that Microsoft’s CEO Satya Nadella applauded this performance, once again praising cloud services for driving the company’s revenues.

“This quarter’s results speak to the differentiated value we are delivering to customers across our productivity solutions and as the hybrid cloud provider of choice,” said Satya Nadella, chief executive officer of Microsoft. “Our investments in IoT, data, and AI services across cloud and the edge position us to further accelerate growth.”

The next earnings release will take place on April 26 for the third quarter of fiscal year 2018.

LEAVE A REPLY