When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works.

Microsoft FY18 Q2 earnings: Revenue up 12%, powered by Azure, Office, Xbox, and Windows

Microsoft today published its financial results from the second quarter of its 2018 fiscal year, or the fourth quarter of the 2017 calendar year.

The firm reported $28.9 billion in revenue (GAAP and non-GAAP), a 12% increase over the same quarter last year. Net income was $7.5 billion non-GAAP, or a $6.3 billion loss GAAP, for a non-GAAP increase of 20% and a GAAP decrease of 201%. That works out to a non-GAAP earnings per share of $0.96.

You might recall that Microsoft closed its deal to acquire LinkedIn on December 8, 2016, so LinkedIn saw solid growth (being that it wasn't a full quarter last year), bringing in $1.3 billion. It operated at a total loss of $265 million, but income was $111 million excluding amortization and intangible assets.

Also in the "Productivity and Business Processes" department, Office saw strong growth. Office commercial products and cloud services grew 10% (10% in constant currency), while Office 365 commercial seat growth was 30%. Office 365 commercial revenue is up 41% (41% in constant currency), while Office commercial products declined by 16%.

Office 365 consumer also grew to 29.2 million subscribers, from 28 million in the previous quarter. Office consumer products and cloud services grew by 12% (11% CC).

Dynamics also saw strong growth, with products and cloud services up 10% (9% CC), and Dynamics 365 up 67% (68% CC).

Intelligent Cloud once again did great, seeing 18% growth (18% CC) in server products and cloud services. Enterprise Services grew by 5% (3% CC). This includes a 98% growth (98% CC) in Azure revenue, with Azure premium services growing by triple digits for the 14th quarter in a row. Server products also grew by 4% (3% CC).

Everything else falls under the "More Personal Computing" department, and that's what includes Windows, Surface, Xbox, search, and more. Total More Personal Computing revenue grew by 2% (2% CC), with Surface being mainly stagnant at 1% growth (no change in CC), despite the Surface Book 2 being released halfway through the quarter.

Windows OEM revenue grew by 4% (4% CC) though, which is completely driven by Pro revenue increasing by 11% (11% CC). Non-Pro revenue declined by 5% (5% CC), and Windows commercial products and cloud services declined by 4% (5% CC).

Gaming revenue grew by 8% (8% CC), which includes an impressive 14% growth (13% CC) in Xbox hardware, which is attributed to the Xbox One X launch in November. Xbox software and services also grew, but by 4% (4% CC). Monthly active Xbox Live users grew 7% to a total of 59 million, although that includes Xbox, Windows 10, and mobile platforms like iOS and Android.

And to end things on a down-note, phone revenue is still listed as immaterial, with a decline from this quarter last year of $204 million.

Report a problem with article
Next Article

Microsoft releases Windows 10 IoT Core and SDK Preview build 17083

Previous Article

Microsoft Launcher updated with Cortana integration for beta testers

Join the conversation!

Login or Sign Up to read and post a comment.

20 Comments - Add comment