Microsoft Q2 FY16 Results Reveal Surface Increase, Dramatic Windows Phone Drop

Microsoft has released its latest set of financial results, with overall revenues falling by 10% year on year, but a strong set of figures for its cloud services. The company just published their Q2 fiscal 2016 earnings report, and according to them, they made $6.3 billion in net income on $25.7 billion in revenue. The company reported non-GAAP revenue of $25.7 billion for the last quarter and $0.78 of adjusted per-share profit.

Those peaks and valleys include growth in its cloud business, varied results on the productivity and business processes business, and declines in the unit that includes Windows OEM revenues and devices in its second-quarter results, the company reported Thursday.

Intelligent Cloud revenue climbed 5% or 11% in constant currency with a 140% increase in Azure revenue in constant currency.

Microsoft revenue in More Personal Computing declined 5 percent. In total, as of now, there are 20.6 million subscribers to Office 365, the cloud version of its productivity applications, up from 9.2 million a year earlier, which is definitely a substantial increase considering all factors that are involved and does look a lot promising.

The number of people using the Xbox Live service for digital content and video games climbed 30% to a record 48 million.

Microsoft plans to hold an earnings call at 5:30PM EST. The service brought in $2.4 billion in revenue, up 69% from a year ago. The Intelligent Cloud business grew five per cent thanks to its component successes; server and cloud services, Azure revenue and Enterprise Mobility Services.

“It was a strong holiday season for Microsoft, highlighted by Surface and Xbox”, said Kevin Turner, COO at Microsoft. Windows 10 adoption continues to outstrip expectations, with roughly 200 million devices running the operating system.

Shares in Microsoft were up more than 3% to $53.43 in after-hours trading in NY and have risen 10% in the past 12 months.

“Our commercial business executed well as our sales teams and partners helped customers realise the value of Microsoft’s cloud technologies”. Sales of Office 365 rose by 70%.