What you need to know
- Surface FY21 Q2 earnings surpassed two billion dollars for the first time.
- Windows OEM license growth was also up by one percent.
- Microsoft's total revenue last quarter was a massive $43.1 billion.
Falling under More Personal Computing is Microsoft's Surface devices, which for the first time broke $2 billion, a modest increase year over year of three percent.
The results are boosted by holiday sales, where Microsoft has become a bit more aggressive in pricing, often offering discounts on its increasingly extensive Surface offerings.
Microsoft does not break out the Surface numbers individually, so it is unclear which device is selling the best. Microsoft launched Surface Pro X (SQ2) and Surface Duo this year along with its existing lineups of Surface Laptop Go, Surface Pro 7, Surface Book 3, Surface Go 2, and Surface Laptop 3.
Windows OEM growth was also up slightly by 1 percent, a mix of declining OEM Pro revenue (down 9 percent) and a significant uptick in OEM non-Pro licenses (up 24 percent).
Microsoft CEO Satya Nadella commented on today's earnings:
What we have witnessed over the past year is the dawn of a second wave of digital transformation sweeping every company and every industry," said Satya Nadella, chief executive officer of Microsoft. "Building their own digital capability is the new currency driving every organization's resilience and growth. Microsoft is powering this shift with the world's largest and most comprehensive cloud platform.
Xbox also did exceptionally well with a massive 51 percent jump in revenue due to high demand for Xbox Series X and Series S.
More details about Microsoft's quarterly performance are due later this afternoon during the earnings call.
We may earn a commission for purchases using our links. Learn more.