Microsoft yesterday held its fiscal Q2 2022 earnings call and once again it was a list of good news for the company. Continuing its massive success over the last decade, a timeframe that suggests this is now normal a not a trend, Microsoft recorded analyst-busting revenue and profit.
During the last quarter, Microsoft took $51.7 billion in revenue, $18.8 billion of which was net income. Microsoft’s performance means revenue grew 20% compared to the same period last year, while income jumped 21%. It is the first time Microsoft has made $50 billion revenue in a single quarter.
As is becoming customary, all Microsoft’s key businesses (Windows, Office, and cloud) performed well. The COVID-19 pandemic continued to boost Windows through demand for computers. Microsoft points out there are 1.4 billion active users across Windows 10 and Windows 11. Revenue from Windows OEMs increased 25%
In Office commercial and cloud, Microsoft saw a 14% increase, while Office 365 commercial grew 19% year-on-year. On the Dynamics platform, the company took a 29% jump, while LinkedIn revenue was up 37%.
Even Surface enjoyed growth after a few quarters of small declines. Microsoft’s hardware division secured an 8% increase after the company predicted another dip. The holiday season and launch of new devices likely boosted Surface during the period.
While Xbox is usually a small piece of Microsoft’s revenue stream, more eyes are on the division following confirmation the company will buy Activision Blizzard for $68 billion. Hardware revenue increased 4% last quarter, a modest jump considering the holiday season. Overall Xbox revenue was at 8% increase compared to Q2 2021.
Content and services drove the Xbox growth. Microsoft says 20 million people have played Halo Infinite, while 18 million have played Forza Horizon 5.
“Digital technology is the most malleable resource at the world’s disposal to overcome constraints and reimagine everyday work and life,” said Satya Nadella, chairman and chief executive officer of Microsoft. “As tech as a percentage of global GDP continues to increase, we are innovating and investing across diverse and growing markets, with a common underlying technology stack and an operating model that reinforces a common strategy, culture, and sense of purpose.”
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