Microsoft reports FY16 Q2 results, generated $23.8 billion in revenue

Microsoft has reported its earnings for its second fiscal quarter of 2016, overall the company brought in a total GAAP revenue of $23.8 billion. That's compared to $26.5 billion in revenue from the same period a year ago. Looking at non-GAAP income, Microsoft actually beat expectations with $25.7 billion outpacing the expected 25.27 billion in revenues. As for net income, the company came in at $5 billion compared to $5.9 billion a year ago.

Turning to each business, Microsoft says that productivity and Business Process revenue declined by 2% to $6.7 billion, while Intelligent Cloud revenue grew 5% to $6.3 billion. Meanwhile, the "More Personal Computing" category, which accounts for Surface, phone and Xbox revenue, among other things, saw revenue drop 5% to $12.7 billion. While the category saw significant growth in Xbox Live monthly active users, along with a notable bump in Surface revenue at $1.3 billion, phone revenue declined by nearly 50%. Here are the highlights:

  • Windows OEM revenue declined 5% in constant currency, outperforming the PC market, driven by higher consumer premium and mid-range device mix
  • Surface revenue increased 29% in constant currency driven by the launch of Surface Pro 4 and Surface Book
  • Phone revenue declined 49% in constant currency reflecting our strategy change announced in July 2015
  • Search advertising revenue excluding traffic acquisition costs grew 21% in constant currency with continued benefit from Windows 10 usage
  • Xbox Live monthly active users grew 30% year-over-year to a record 48 million

Source: Microsoft

Dan Thorp-Lancaster

Dan Thorp-Lancaster is the former Editor-in-Chief of Windows Central. He began working with Windows Central, Android Central, and iMore as a news writer in 2014 and is obsessed with tech of all sorts. You can follow Dan on Twitter @DthorpL and Instagram @heyitsdtl