Microsoft FY22 Q2 earnings: $51.7 billion in revenue, beating predictions [Updated]
Update January 25, 2022, at half dozen:25 p.thou. ET: Comments from Microsoft's FY22 Q2 earnings call have been added to the finish of this study.
Microsoft's FY22 Q2 (fiscal twelvemonth 2022, quarter two) results are in, and, as has go the usual for the tech giant, it made an extraordinarily large sum of money in its latest quarter. It accrued $51.vii billion in acquirement, beating out Wall Street estimates for the umpteenth quarter in a row. Here are the large takeaways from the FY22 Q2 written report:
- Revenue was $51.7 billion and increased twenty%
- Operating income was $22.two billion and increased 24%
- Internet income was $18.8 billion and increased 21%
- Diluted earnings per share was $2.48 and increased 22%
"Solid commercial execution, represented past strong bookings growth driven by long-term Azure commitments, increased Microsoft Deject revenue to $22.1 billion, up 32% year over year," said EVP and CFO of Microsoft Amy Hood, reiterating just how vital Azure is to Microsoft's overall strategy.
Cloud, productivity, and calculating gains
Productivity and Business Processes revenue stayed potent with a 19% YoY jump made possible by $15.9 billion in revenue. Individual operations that combined to reach the aforementioned total include:
- Office Commercial products and cloud services revenue increased fourteen% driven by Role 365 Commercial revenue growth of 19%
- Office Consumer products and cloud services revenue increased 15% and Microsoft 365 Consumer subscribers grew to 56.4 million
- LinkedIn revenue increased 37% (up 36% in abiding currency)
- Dynamics products and cloud services revenue increased 29% driven past Dynamics 365 revenue growth of 45% (upwardly 44% in constant currency)
LinkedIn continues to do well despite some troublesome news in October 2022, overcoming obstacles and maintaining growth.
Intelligent Deject operations brought in $18.iii billion in revenue, a 26% YoY increment. Within that space, cloud services and server products acquirement shot upward past 29% thanks to Azure.
More Personal Computing besides saw growth to the tune of xv% YoY with $17.five billion. These were the big gains from that sector:
- Windows OEM revenue increased 25%
- Windows Commercial products and cloud services revenue increased thirteen% (up 14% in abiding currency)
- Xbox content and services revenue increased 10%
- Search and news advertising revenue excluding traffic acquisition costs increased 32%
- Surface revenue increased 8%
Equally the in a higher place figures signal, Surface and Windows both enjoyed particularly potent figures. Similarly, Xbox content and services saw a salubrious 10% uptick, though games specifically grew by eight%. First-party titles and Game Pass were, as expected, key pillars of the growth.
To put this quarter's gains in context, Microsoft managed to shell out not only Wall Street's bets, but also its own expectations as outlined during its FY22 Q1 earnings call. Yous can see the full FY22 Q2 report via Microsoft'due south press release and accompanying slideshow, which detail more specifics for each individual earnings category.
What's next
After Microsoft releases its quarterly report, information technology holds an investor call, so stay tuned for that. You lot can mind to it live at two:thirty p.m. PT / 5:30 p.g. ET via the company's investor portal. It's not always clogged of information that's useful to the mutual tech enthusiast, just once in a while a gold nugget volition driblet that's non in the earnings study, be it a item most the country of Xbox operations or an interesting Microsoft Teams figure. If yous want to know everything yous can near the company'due south trajectory and forecasts, you'll want to attend the call.
Mail-telephone call news
Update: The call has taken place. Here are the key remarks discussed regarding existing milestones and forward-looking statements for FY22 Q3.
Over 90% of Fortune 500 companies use Microsoft Teams, including Walmart which has chosen Teams for its modest army of over 2 million workers. More than 1.4 billion PCs are running on Windows ten and Windows eleven, and Border market share has grown. Border has empowered $800 1000000 in savings via its coupons. Microsoft'due south Dash acquisition is expected to close in Q3.
Every bit for forward-looking figures, another stiff quarter is expected in FY22 Q3. Consumer growth is anticipated to be in the high unmarried digits, Dynamics growth is guesstimated to exist somewhere in the mid-twenties (percent) range, and Azure revenue growth should exist up sequentially. $xv.6-15.85 billion in acquirement is expected for productivity business, while Intelligent Cloud is estimated to bring in $18.75-nineteen billion, driven past Azure. Surface growth is forecast for the "mid-teens," while Windows OEM growth is expected to land in the high single digits. Gaming revenue should abound in the mid-unmarried digits, and consoles will go along to be impacted by supply chain uncertainty (that means Xbox Series Ten).
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Source: https://www.windowscentral.com/microsoft-fy22-q2-earnings-tk-revenue-beating-predictions
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