Microsoft rakes in a massive $43.1 billion in revenue for FY21 Q2, surpassing expectations

Source: Microsoft

What you demand to know

Microsoft's total revenue terminal quarter was a massive $43.1 billion.
Surface FY21 Q2 earnings surpassed two billion dollars for the starting time time.
Xbox earnings were up 51 percent due to robust need for gaming.

Microsoft reported its FY21 Q2 earnings today, bringing in a massive $43.1 billion up 17 percent year over year from $36.9 billion.

The earnings reveal how well-positioned Microsoft is for what CEO Satya Nadella calls "the dawn of a second wave of digital transformation sweeping every visitor and every industry."

Overall highlights for the quarter include:

Operating income was $17.ix billion and increased 29%
Internet income was $fifteen.five billion and increased 33%
Diluted earnings per share was $two.03 and increased 34%

Commerical and cloud reign rex

As expected, commercial deject acquirement reached a massive $sixteen.seven billion, up 34 percent year over yr:

Server products and cloud services revenue increased 26% (up 24% in constant currency) driven by Azure revenue growth of 50% (up 48% in constant currency)

Intelligent Cloud Fy21 Q Source: Microsoft

Other revenues from Productivity and Business Processes include:

Office Commercial products and cloud services revenue increased xi% (up 9% in constant currency) driven by Office 365 Commercial revenue growth of 21% (up 20% in constant currency)
Office Consumer products and deject services acquirement increased 7% (upwardly 6% in constant currency), and Microsoft 365 Consumer subscribers increased to 47.5 million
LinkedIn revenue increased 23% (up 22% in abiding currency)
Dynamics products and cloud services acquirement increased 21% (up 18% in constant currency) driven by Dynamics 365 revenue growth of 39% (up 37% in constant currency

Surface and Windows going strong

Revenue in More Personal Computing was $15.1 billion and increased 14% (upwardly 13% in constant currency), with the post-obit business organisation highlights:

Windows OEM revenue increased 1%
Windows Commercial products and deject services revenue increased 10% (up viii% in abiding currency)
Xbox content and services revenue increased 40% (upwards 38% in constant currency)
Surface revenue increased iii% (up 1%in constant currency)
Search advertizing acquirement excluding traffic acquisition costs increased ii% (upwards 1% in abiding currency)

Microsoft's Surface devices for the offset time broke $2 billion in rev, a modest increase twelvemonth over year of three per centum.

Surface Fy21 Q Source: Microsoft

Microsoft does not break out the Surface numbers individually, and so it is unclear which device is selling the all-time. Microsoft launched Surface Pro 10 (SQ2) and Surface Duo this year along with its existing lineups of Surface Laptop Get, Surface Pro vii, Surface Book three, Surface Go two, and Surface Laptop 3.

Windows OEM growth was too upwardly slightly past one percentage, due to a mix of declining OEM Pro acquirement (downward 9 percent) and a pregnant uptick in OEM non-Pro licenses (up 24 percent).

Xbox looms large

Xbox also did exceptionally well with a massive 51 percentage jump in revenue.

Microsoft attributes its gaming successes to various factors, but spotlighting the recent launch of its new Xbox Serial 10 and Xbox Series S consoles. Information technology contributed to hardware acquirement near-doubling with an 86 percent surge, as information technology scrambles to meet demand with its latest generation consoles. The 2 new devices launched back in Nov, with tight availability expected to keep over the coming months.

Microsoft FY21 Q2 Xbox Source: Microsoft

Content and services saw an uptick this quarter, including Xbox software and subscriptions, rising 40 percent year-over-twelvemonth. Microsoft pins this on "force" from third-party and first-party titles, every bit well equally its Xbox Game Pass memberships. It contrasts the downward slump witnessed this time last year, where overall gaming revenue fell 21% at the tail terminate of the Xbox I generation.

Microsoft CEO Satya Nadella commented on today's earnings:

What nosotros have witnessed over the by year is the dawn of a second wave of digital transformation sweeping every visitor and every manufacture," said Satya Nadella, principal executive officer of Microsoft. "Building their own digital capability is the new currency driving every organisation'southward resilience and growth. Microsoft is powering this shift with the world's largest and most comprehensive cloud platform.

More than details about Microsoft's quarterly performance are due later this afternoon during the earnings call.

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