Software King of the World, Microsoft, reported a revenue hike of 20 per cent in the second quarter of its fiscal 2022 financial results, earning revenues of $51.7 billion.
Operating income for the quarter ended December 31, 2021 saw double-digit growth of 24 percent to $22.2 billion.
The boost, which shocked the cocaine nose jobs of Wall Street, was due to a tremendous growth seen in its Microsoft Cloud business, which spiked 32 percent year on year to reach revenues of $22.1 billion.
Microsoft chairman and CEO, Satya Nadella said that it was a record quarter, driven by continued strength of the Microsoft Cloud.
“We’re living through a generational shift in our economy and society. Digital technology is the most malleable resource at the world’s disposal to overcome constraints and reimagine everyday work and life.”
The tech giant’s revenue in Productivity and Business Processes totalled $15.9 billion, up 19 percent.
Broken down, this increase was mainly driven by growth in Office Consumer products and cloud services, rising 15 percent alongside Microsoft 365 Consumer subscribers expanding to 56.4 million.
Sales in Intelligent Cloud rose 26 percent, generating $18.3 billion.
Microsoft said its server products and cloud services revenue climbed 29 percent thanks to Azure and other cloud services revenue growth of 46 percent.
Microsoft’s Azure Arc customer base has tripled year over year.
The company’s overall gaming revenue enjoyed an upward trend of eight percent, with continued appetite for the latest Xbox Series X and Series S consoles driving Xbox hardware revenue up four percent.
Microsoft said it expects cost of goods sold (COGS) of $15.5 billion to $15.7 billion and operating expense of $13.4 billion to $13.5 billion driven by investments in high-growth, strategic areas to drive continued long-term revenue growth.
“And finally, for FY22, given our strong performance in the first half of the fiscal year and our current H2 outlook, full-year operating margins should be slightly up year over year even with the impact of changes in accounting estimates noted earlier and the significant strategic investments we are making to capture the tremendous opportunities ahead of us”, Nadella added during the call.
