Microsoft ( (MSFT) ) has released its Q2 earnings. Here is a breakdown of the information Microsoft presented to its investors.
Invest with Confidence:
- Follow TipRanks' Top Wall Street Analysts to uncover their success rate and average return.
- Join thousands of data-driven investors – Build your Smart Portfolio for personalized insights.
Microsoft Corporation, a leader in technology innovation, is widely recognized for its development of platforms and tools powered by artificial intelligence, aimed at empowering individuals and organizations globally. Operating in the tech sector, the company is noted for its robust cloud and AI solutions.
In its latest earnings report, Microsoft showcased a strong financial performance for the quarter ending December 31, 2024. The tech giant reported a 12% increase in revenue, reaching $69.6 billion. Operating income saw a substantial rise of 17%, bringing it to $31.7 billion, while net income climbed by 10% to $24.1 billion. The company’s diluted earnings per share also grew by 10%, underscoring its successful quarter.
Key highlights from Microsoft’s earnings report include a notable growth in its cloud business, with Microsoft Cloud revenue jumping 21% year-over-year to $40.9 billion. The Intelligent Cloud segment reported a 19% increase in revenue, primarily driven by a 31% surge in Azure and other cloud services. Additionally, the Productivity and Business Processes division flourished, with revenue increasing by 14%, supported by a 15% growth in Microsoft 365 Commercial products and cloud services.
The More Personal Computing segment remained stable with minor revenue changes, although there were gains in Windows OEM and Devices revenue by 4% and a 21% rise in search and news advertising revenue. The company also returned $9.7 billion to shareholders through dividends and share repurchases during the quarter.
Looking ahead, Microsoft remains focused on leveraging its cloud and AI infrastructure to drive future growth, balancing operational discipline with strategic investments. The company’s commitment to innovation and expanding market opportunities positions it favorably in the competitive tech landscape.
