Microsoft has released its earnings report for FY18 Q2, showing revenues of $28.9 billion and $7.5 billion in non-GAAP net income. That's up from the same period a year ago, during which Microsoft brought in $25.8 billion in revenue and $6.2 billion in net income.
Here are the highlights from this quarter's release:
- Revenue was $28.9 billion and increased 12%
- Operating income was $8.7 billion and increased 10%
- GAAP net loss was $(6.3) billion and non-GAAP net income was $7.5 billion -GAAP diluted loss per share was $(0.82) and non-GAAP diluted earnings per share was $0.96 -GAAP results include a $13.8 billion net charge related to the Tax Cuts and Jobs Act (TCJA)
As has been a trend over recent quarters, a large portion of Microsoft's growth in this quarter was due to a continued focus on its cloud and productivity businesses. Revenues in Intelligent Cloud, for example, were up by 15 percent to $7.8 billion, largely driven by Azure revenue growth, which was up by 98 percent. Likewise, revenue in Productivity and Business Processes was up to $9 billion, which was a total increase of 25 percent year-over-year. Helping to push that up was Office 365, which saw commercial revenue growth of 41 percent. Office 365 consumer subscribers also increased to 29.2 million in the quarter. For its part, LinkedIn contributed revenue of $1.3 billion, Microsoft says.
Moving on to the More Personal Computing category, which encompasses Windows OEM revenue, Surface, gaming and more, revenue showed growth of 2 percent overall. Of note is that gaming revenue was up 8 percent, due in part to Xbox hardware revenue growth from the launch of Xbox One X. Curiously, search advertising revenue led this category with a 15 percent increase in revenue. Here are the highlights:
- Windows OEM revenue increased 4% (up 4% in constant currency) driven by OEM Pro revenue growth of 11%
- Windows commercial products and cloud services revenue decreased 4% (down 5% in constant currency) due to the impact of a prior year large deal
- Gaming revenue increased 8% (up 8% in constant currency) driven by Xbox hardware revenue growth from the Xbox One X launch
- Search advertising revenue excluding traffic acquisition costs increased 15% (up 15% in constant currency) driven by higher revenue per search and search volume
- Surface revenue increased 1% (relatively unchanged in constant currency)
As usual, Microsoft will hold a conference call and webcast at 2:30 p.m. PT / 5:30 p.m. ET on its investor site to discuss the earnings.
We may earn a commission for purchases using our links. Learn more.
Alleged source code for Windows XP exposed in 4chan leak
Alleged Windows XP source code has surfaced online after a thread on 4chan gained steam this week. If genuine, the source code could pose a security threat for any remaining Windows XP systems, particularly if they're connected to the internet.
HP updates Reverb G2 ahead of launch, preorders start shipping in November
HP is finally nearly ready to start shipping its new Reverb G2 Windows Mixed Reality headset. Those who have already preordered the $600 headset should see them arrive in November, while anyone preordering after September 24 will see headsets arrive in December.
The 300Hz display on the Razer Blade 15 is way ahead of its time
Our favorite gaming laptop now has a 300Hz display option and it's smoother than your eyes can really see.
These are the best upgrades for your Prusa Mk3 3D printer
The Prusa Mk3 is one of the best 3D printers you can buy right now, but even the best can be made better. Here are some of our favorite upgrades for the Mk3.