With U.S. equities under pressure, it is a useful time to track earnings from the world's core technology assets more closely.
Microsoft FY2022 Q2 Earnings Snapshot:
Global digitalization leader Microsoft posted quarterly revenue of $51.728B, up 20% year over year and 14% sequentially, a new record. Operating income was $22.247B, up 24% year over year, a new record. Net income was $18.765B, up 21% year over year.
By major segment: Productivity and Business Processes revenue was $15.936B (31% of total), up 19% year over year, the sixth consecutive quarterly record. Intelligent Cloud revenue was $18.327B (35% of total), up 26% year over year, the fourth consecutive quarter as Microsoft's largest segment. More Personal Computing revenue was $17.465B (34% of total), up 15% year over year, a new record.
Microsoft FY2022 Q2 Earnings Highlights:
Microsoft's second-largest product, Azure, generated approximately $11.069B in revenue, up 46% year over year, maintaining sequential growth. It is on track to overtake Office as the largest product next quarter!
Microsoft's largest product, Office, generated approximately $11.245B in revenue, up ~14% year over year, the sixth consecutive quarterly record. Office 365 Commercial (SaaS) revenue grew 19% year over year, while Office Commercial perpetual license revenue fell 17% year over year, underscoring the accelerating enterprise migration to Office 365.
Microsoft's third-largest product, Windows, generated approximately $6.990B in revenue, up ~19% year over year, a new record, driven by Windows 11 and ASP improvement.
LinkedIn revenue was approximately $3.538B, up ~37% year over year, the fourth consecutive quarterly record.
FY2022 Q3 revenue guidance midpoint of $49.3B implies 18% year-over-year growth. Intelligent Cloud continues sequential growth with 26% year-over-year growth, set to be the largest segment for the fifth consecutive quarter. Operating income guidance midpoint of $20.4B implies 20% year-over-year growth.
Historical Microsoft Articles (Most Recent First):
Microsoft Series Part Two: Microsoft Market Cap Global No.1! Taking You Inside the Low-Key Digital King
"Microsoft Poised to Surpass Apple in Market Cap Tonight, Crowned Global #1" "Microsoft Series Part 1: Microsoft Hits New Highs Again! Earnings Stability Exemplifies Global Tech Best Practices"
"Six Charts to Understand Microsoft's Latest Earnings" "Five Charts to Understand Microsoft's Latest Earnings"
"Six Charts to Understand Microsoft's Latest Earnings"
"Earnings Preview | Microsoft: At the Trillion-Dollar Peak, the Wind Howls"