Microsoft FY22 Q2 earnings: $51.7 billion in revenue, beating predictions [Updated]
Once again, Microsoft flexes its monetary muscle.
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What you need to know
Update January 25, 2022, at 6:25 p.m. ET:Comments from Microsoft’s FY22 Q2 earnings call have been added to the end of this report.
Microsoft’s FY22 Q2 (fiscal year 2022, quarter two) results are in, and, as has become the usual for the tech giant, it made an extraordinarily large sum of money in its latest quarter. It accrued $51.7 billion in revenue, beating out Wall Street estimates for the umpteenth quarter in a row. Here are the big takeaways from the FY22 Q2 report:
“Solid commercial execution, represented by strong bookings growth driven by long-term Azure commitments, increased Microsoft Cloud 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 computing gains
Productivity and Business Processes revenue stayed strong with a 19% YoY jump made possible by $15.9 billion in revenue. Individual operations that combined to achieve the aforementioned total include:
LinkedIn continues to do well despite sometroublesome news in October 2021, overcoming obstacles and maintaining growth.
Intelligent Cloud operations brought in $18.3 billion in revenue, a 26% YoY increase. Within that space, cloud services and server products revenue shot up by 29% thanks to Azure.
More Personal Computing also saw growth to the tune of 15% YoY with $17.5 billion. These were the big gains from that sector:
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As the above figures indicate, Surface and Windows both enjoyedparticularly strong figures. Similarly, Xbox content and services saw a healthy 10% uptick, though games specifically grew by 8%. 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 beat out not only Wall Street’s bets, but also its own expectations as outlined during itsFY22 Q1 earnings call. You can see the full FY22 Q2 report viaMicrosoft’s press releaseand accompanying slideshow, which detail more specifics for each individual earnings category.
What’s next
After Microsoft releases its quarterly report, it holds an investor call, so stay tuned for that. You can listen to it live at 2:30 p.m. PT / 5:30 p.m. ET via the company’sinvestor portal. It’s not always chock-full of information that’s useful to the common tech enthusiast, but once in a while a gold nugget will drop that’s not in the earnings report, be it a detail about the state of Xbox operations or an interesting Microsoft Teams figure. If you want to know everything you can about the company’s trajectory and forecasts, you’ll want to attend the call.
Post-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 small army of over two million workers. More than 1.4 billion PCs are running on Windows 10 andWindows 11, and Edge market share has grown. Edge has empowered $800 million in savings via its coupons.Microsoft’s Nuance acquisitionis expected to close in Q3.
As for forward-looking figures, another strong quarter is expected in FY22 Q3. Consumer growth is anticipated to be in the high single digits, Dynamics growth is guesstimated to be somewhere in the mid-twenties (percent) range, and Azure revenue growth should be up sequentially. $15.6-15.85 billion in revenue is expected for productivity business, while Intelligent Cloud is estimated to bring in $18.75-19 billion, driven by 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 grow in the mid-single digits, and consoles will continue to be impacted bysupply chain uncertainty(that meansXbox Series X).
Robert Carnevale is the News Editor for Windows Central. He’s a big fan of Kinect (it lives on in his heart), Sonic the Hedgehog, and the legendary intersection of those two titans, Sonic Free Riders. He is the author ofCold War 2395. Have a useful tip? Send it to robert.carnevale@futurenet.com.
