Microsoft has released its Q2 2022 earnings report, it shows an overall increase in revenue and a strong performance across the board.
Some key figures include:
Overall Microsoft Office has performed well across both the commercial side and consumer side. Within the commercial services Office Commercial products and cloud services revenue has grown by 14% and Office 365 Commercial has grown by 19%.
The consumer side of Microsoft Office has also performed well. Office Consumer products and cloud services has seen an increase of 15% in revenue and Microsoft 365 Consumer subscribers has increased to 56.4 million.
LinkedIn has also continued to grow strongly since Microsoft acquired the company in 2016 for $26 billion. In Q2 2022 LinkedIn has seen a revenue increase of 37%.
Revenue for Intelligent Cloud was reported to be $18.3 billion which is an increase of 26%. Microsoft Azure is still firmly the second largest Cloud business, just behind Amazon’s AWS, but this quarter Microsoft has reported a revenue increase of 29% in Azure Server products and cloud services and revenue in Microsoft’s other cloud services has increased by 46%.
Satya Nadella, CEO of Microsoft said:
“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.”
Within the area of Personal Computing, Microsoft has also reported revenue increases. Windows OEM has increased revenue by 25% and Windows Commercial products and cloud services has seen revenue increase by 13%.
Microsoft Surface revenue has increased by 8%, this includes many of Microsoft’s hardware offerings such as the Surface Pro 8, Surface Pro X, Surface Go 3 and the Mobile device Surface Duo 2. Search and news advertising revenue (excluding traffic acquisition costs) has also seen an increased revenue of 32%.
Gaming is also becoming an increasingly more important sector for Microsoft, the company also recently announced that they would be acquiring Activision Blizzard for $68.7 billion, which is set to the biggest acquisition yet for Microsoft. In this quarter Xbox content and services has seen revenue increase by 10% and Microsoft also recently revealed that Xbox Game Pass and PC Game Pass has over 25 million subscribers between them.
Microsoft stock has dropped by around 4.62% to $275.15 in after-hours trading following the earnings report release. The stock is down around 15% over the past month.