Coming Soon: GET-IT: Endpoint Management 1-Day Conference on September 28th at 9:30 AM ET Coming Soon: GET-IT: Endpoint Management 1-Day Conference on September 28th at 9:30 AM ET
Windows 10

Microsoft's Q2 Beats Estimate, $25.7 Billion in Revenue

Microsoft Hero 2

Microsoft released their second quarter (fourth quarter calendar year) earnings today and the company had revenue of $23.8 billion GAAP, and $25.7 billion non-GAAP. For the period, operating income was $6.0 billion GAAP, and $7.9 billion non-GAAP  with a Net income of $5.0 billion GAAP, and $6.3 billion non-GAAP.

During the quarter, Office 365 growth was strong with the service recording 20.6 million subscribers and Office commercial products and cloud services revenue growing 5% in constant currency driven by Office 365 revenue growth of nearly 70% in constant currency.

Azure revenue grew 140% in constant currency with revenue from Azure premium services growing nearly 3x year-over-year with Server products and cloud services revenue growing 10% in constant currency.

Sponsored Content

Say Goodbye to Traditional PC Lifecycle Management

Traditional IT tools, including Microsoft SCCM, Ghost Solution Suite, and KACE, often require considerable custom configurations by T3 technicians (an expensive and often elusive IT resource) to enable management of a hybrid onsite + remote workforce. In many cases, even with the best resources, organizations are finding that these on-premise tools simply cannot support remote endpoints consistently and reliably due to infrastructure limitations.

Revenue in More Personal Computing declined 5% (down 2% in constant currency) to $12.7 billion, with Windows OEM revenue declining 5% in constant currency which the company notes did outperform the PC market but the drop was driven by higher consumer premium and mid-range device mix.

Surface revenue increased 29% to $1.35 billion but Phone revenue declined 49% mostly driven by a change in strategy by the company. The company is now selling a much smaller mix of devices and is not churning out new phone like Nokia was doing when they were running the operation.

For the period, 4.5 million Lumia phones were sold and 22.5 million other phones in the second quarter of fiscal year 2016, compared with 10.5 million and 39.7 million sold, respectively, in the prior year.

Xbox Live monthly active users grew 30% year-over-year to a record 48 million users but the company notes that hardware revenue declined because of of the Xbox 360 sales volume dropping. Video game revenue did climb by 57%, thanks to Halo 5 and Minecraft.

Search advertising, revenue excluding traffic acquisition costs grew 21% in constant currency, driven by Windows 10 usage.

Of all the numbers reported, the most important is the Azure revenue growth. The company’s future is based on its cloud platform and seeing as it is growing steadily, it gives investors confidence that the company is cemented for the future.


Related Topics:


Don't have a login but want to join the conversation? Sign up for a Petri Account

Comments (0)

Leave a Reply

Brad Sams has more than a decade of writing and publishing experience under his belt including helping to establish new and seasoned publications From breaking news about upcoming Microsoft products to telling the story of how a billion dollar brand was birthed in his book, Beneath a Surface, Brad is a well-rounded journalist who has established himself as a trusted name in the industry.
Live Webinar: Active Directory Security: What Needs Immediate Priority!Live on Tuesday, October 12th at 1 PM ET

Attacks on Active Directory are at an all-time high. Companies that are not taking heed are being punished, both monetarily and with loss of production.

In this webinar, you will learn:

  • How to prioritize vulnerability management
  • What attackers are leveraging to breach organizations
  • Where Active Directory security needs immediate attention
  • Overall strategy to secure your environment and keep it secured

Sponsored by: