Microsoft Reports Earnings, Showing Marked Q2 Growth

Microsoft released its quarterly earnings report on Tuesday, bringing in over $43.1 billion of revenue, up 17 percent from the previous quarter. Financial officers attribute the success to the ongoing impact of COVID on business operations along with the release of the Xbox Series X/S.

Microsoft Reports Earnings, Showing Marked Q2 Growth Cover

Microsoft has released its quarterly fiscal report, boasting a seventeen percent increase in revenue up to a total of $43.1 billion. Satya Nadella, chief executive officer of Microsoft, largely attributes this growth to widespread digitalization. “It’s no longer enough to just adopt technology. Businesses need to build their own technology to compete and grow. Microsoft is powering this shift with the world’s largest and most comprehensive cloud platform.”

With the continuing impact of COVID-19 on the way people work and spend their free time, Microsoft has seen substantial growth as a whole, particularly in its cloud and games revenues. Microsoft created a Twitter thread highlighting some of the major points in the report.

As such, Microsoft’s Intelligent Cloud revenue leaped to $16.7 billion, up 34 percent from the previous year, largely driven by a 50 percent increase in Azure. In addition, Microsoft saw particularly significant growth with its Xbox content, up to 40 percent from the previous year. The release of the Xbox series X/S along with sales on previous-gen consoles helped engineer Microsoft’s growth in its gaming services, said Amy Hood, chief financial officer.

Hood noted that Microsoft’s financial team expects this growth to continue across the next quarter, anticipating, among other variables, continued demand for its cloud-based services and next-generation consoles. This financial team expects a similar quarter for its cloud services, bringing in between $14.7 – $14.95 billion. In gaming, they expect continued growth of about forty percent.

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