By the first half of this year, Microsoft has recorded revenue of $23.38-billion. The company’s Gross margin, operating income and diluted earnings per share (EPS) were $15.79-billion, $6.48-billion and $0.55 per share, respectively.
Revenue and cost of revenue from the acquired business (the Nokia Devices and Services (NDS) business), including remuneration of intangible assets, are reported in the new Phone Hardware segment.
“We are galvanised around our core as a productivity and platform company for the mobile-first and cloud-first world, and we are driving growth with disciplined decisions, bold innovation, and focused execution,” says Satya Nadella, CEO of Microsoft. “I’m proud that our aggressive move to the cloud is paying off our commercial cloud revenue doubled again this year to a $4,4-billion annual run rate.”
Devices and Consumer revenue grew 42 percent to $100 billion, with the following business highlights:
Windows OEM revenue grew 3 percent, driven by 11 percent growth in Windows OEM Pro revenue.
Office 365 Home and Personal subscribers totaled more than 5.6-million, adding more than 1-million subscribers again this quarter.
- The acquired Phone Hardware business contributed $1.99-billion to current year revenue.
- Bing search advertising revenue grew 40%, and U.S. search share grew to 19.2%.
- Commercial revenue grew 11% to $13,48-billion, with the following business highlights:
- Commercial cloud revenue grew 147% with an annualized run rate that exceeds $4,4-billion.
- Windows volume licensing revenue grew 11%.
- Server products revenue, including Azure, grew 16%, with double-digit growth for SQL Server and System Centre.
“Our results reflect our customers’ long-term commitments to our products and services, and strong execution by our field teams. We are thrilled with the tremendous momentum of our cloud offerings with Office 365 and Azure both growing over 100% again,” says Kevin Turner, chief operating officer at Microsoft.
“Looking forward, we are excited by the amazing opportunities enabled by our technology roadmap and our strong engagement across partners, customers, and developers.”
