Microsoft Jumps 7%: FYQ2 Rev, EPS Beat

Office 365 saw 70% revenue growth and now has 20 million consumer subscribers.

The company’s net income fell to $5.00 billion, or 62 cents per share, in its second-quarter ended December 31 from $5.86 billion, or 71 cents per share, a year earlier.

Here’s an interesting stat: Microsoft’s Bing and its Surface lineup contributed more than $2.3 billion of revenue for the company during its second quarter.

Revenue of $25.7 billion (Non-GAAP), versus $25.26 billion estimated.

The revenue Microsoft generated from their cloud business, including the Azure platform used by many businesses for storage and collaboration, was up by 5% to 6.3 billion dollars (£4.3bn), while Azure revenue alone was up by 140%.

In terms of devices, Surface sales increased strongly, with revenues up by 29 per cent following the launch of the Surface Pro 4 and Surface Book. It now breaks down earnings into three distinct business units focused on productivity services, cloud, and Windows/devices.

More Personal Computing (MPC), which contains Windows, Devices, Gaming and Search: $12.7 billion.

Microsoft’s CEO Satya Nadella says that the company expects a strong next quarter, specifically thanks to Windows 10, as businesses are now looking into the operating system and piloting it for further deployment. On an adjusted basis, revenue fell to $25.69 billion but beat analysts’ estimates. Same goes for Office 365, which falls under the umbrella productivity category that drew $6.7 billion in revenue (a 2% decrease).

Microsoft has just released its financial results for Q4 2015, or their Q2 2016 Financial Year.

In fact, sales figures for Microsoft’s flagging smartphone brand are down by more than half compared to this time a year ago.

Over one third of the Fortune 500 have chosen our Enterprise Mobility solutions, up almost 3x.

The company’s phone revenue plummeted 49 percent when excluding foreign currency fluctuations as a result of the changes, which included cutting the number of smartphones it sells.

Xbox Live monthly active users grew 30% year-over-year to a record 48 million.

NPD Group analyst Stephen Baker said: “People who think Microsoft is sliding into irrelevancy really need to re-evaluate how they see the company”.