Cloud and AI Drive Microsoft Q2 Results

In its second fiscal quarter, which ended on December 31, Microsoft reported a rise in revenue and profits. The results were driven by cloud and AI revenues, which recorded a double-digit rise.

Revenue was at $81.3 billion and increased 17%. Operating income grew 21% to $38.3 billion, as net income reached $38.5 billion, a 60% rise. Diluted earnings per share were $5.16 and increased 60%.

“We are only at the beginning phases of AI diffusion, and already Microsoft has built an AI business that is larger than some of our biggest franchises,” said Satya Nadella, chairman and chief executive officer of Microsoft. “We are pushing the frontier across our entire AI stack to drive new value for our customers and partners.”

“Microsoft Cloud revenue crossed $50 billion this quarter, reflecting the strong demand for our portfolio of services,” said Amy Hood, executive vice president and chief financial officer of Microsoft. “We exceeded expectations across revenue, operating income, and earnings per share.”

Microsoft Cloud revenue was $51.5 billion and increased 26, and commercial remaining performance obligation increased 110% to $625 billion. Revenue in Productivity and Business Processes was $34.1 billion and grew by 16%. Revenue in Intelligent Cloud was $32.9 billion and increased 29%. Revenue in More Personal Computing was $14.3 billion and decreased 3%.