It’s that time of the quarter again where Microsoft reports its earnings but this time around it is for CY Q4 / FY Q2. As expected, Microsoft reported strong numbers across the board but let us take a closer look.

For the quarter, Microsoft revenue jumped a healthy 17% to bring in $43.1 billion with Net income coming in at $15.5 billion, an increase of 33% over the same period last year.

Revenue in Productivity and Business Processes was $13.4 billion and increased 13% , with the following business highlights:

• Office Commercial products and cloud services revenue increased 11%  driven by Office 365 Commercial revenue growth of 21%
• Office Consumer products and cloud services revenue increased 7% and Microsoft 365 Consumer subscribers increased to 47.5 million
• LinkedIn revenue increased 23%
• Dynamics products and cloud services revenue increased 21% driven by Dynamics 365 revenue growth of 39%

Revenue in Intelligent Cloud was $14.6 billion and increased 23% (up 22% in constant currency), with the following business highlights:

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• Server products and cloud services revenue increased 26%  driven by Azure revenue growth of 50%.

Revenue in More Personal Computing was $15.1 billion and increased 14% (up 13% in constant currency), with the following business highlights:

• Windows OEM revenue increased 1%
• Windows Commercial products and cloud services revenue increased 10% (up 8% in constant currency)
• Xbox content and services revenue increased 40%
• Surface revenue increased 3%
• Search advertising revenue excluding traffic acquisition costs increased 2%

Overall, this was a very healthy quarter for Microsoft. The company managed to grow not only their revenue but Net Income, the money the company is putting into the bank, but significant double-digit figures.

Microsoft’s CEO, Satya Nadella attributed the strong beat to a “second wave of digital transformation” which is pushing users towards the company’s cloud services. As of the time of this post, the company’s stock price was up more than 5% in after-hours trading.