(Updated - January 25, 2022 4:03 PM EST)

Microsoft (NASDAQ: MSFT) reported Q2 EPS of $2.48, $0.17 better than the analyst estimate of $2.31. Revenue for the quarter came in at $51.7 billion versus the consensus estimate of $50.88 billion.

“Digital technology is the most malleable resource at the world’s disposal to overcome constraints and reimagine everyday work and life,” said Satya Nadella, chairman and chief executive officer of Microsoft. “As tech as a percentage of global GDP continues to increase, we are innovating and investing across diverse and growing markets, with a common underlying technology stack and an operating model that reinforces a common strategy, culture, and sense of purpose.”

“Solid commercial execution, represented by strong bookings growth driven by long-term Azure commitments, increased Microsoft Cloud revenue to $22.1 billion, up 32% year over year” said Amy Hood, executive vice president and chief financial officer of Microsoft.

Business Highlights

• Revenue in Productivity and Business Processes was $15.9 billion and increased 19%, with the following business highlights:
• Office Commercial products and cloud services revenue increased 14% driven by Office 365 Commercial revenue growth of 19%
• · Office Consumer products and cloud services revenue increased 15% and Microsoft 365 Consumer subscribers grew to 56.4 million
• · LinkedIn revenue increased 37% (up 36% in constant currency)
• · Dynamics products and cloud services revenue increased 29% driven by Dynamics 365 revenue growth of 45% (up 44% in constant currency)
• Revenue in Intelligent Cloud was $18.3 billion and increased 26%, with the following business highlights:
• · Server products and cloud services revenue increased 29% driven by Azure and other cloud services revenue growth of 46%
• Revenue in More Personal Computing was $17.5 billion and increased 15%, with the following business highlights:
• · Windows OEM revenue increased 25%
• · Windows Commercial products and cloud services revenue increased 13% (up 14% in constant currency)
• · Xbox content and services revenue increased 10%
• · Search and news advertising revenue excluding traffic acquisition costs increased 32%
• · Surface revenue increased 8%
• Microsoft returned $10.9 billion to shareholders in the form of share repurchases and dividends in the second quarter of fiscal year 2022, an increase of 9% compared to the second quarter of fiscal year 2021.

For earnings history and earnings-related data on Microsoft (MSFT) click here.