Microsoft hits US$26.5bn revenues in Q2 – momentum driven by cloud and devices

26 Jan 2015

Microsoft CEO Satya Nadella

Gains in software giant Microsoft’s devices and cloud divisions drove second-quarter revenues of US$26.5bn and operating income of US$7.8bn.

Microsoft reported an 8pc increase in revenues from its Devices and Consumer group of US$12.9bn which was driven by Surface revenues of US$1.1bn and phone hardware sales of US$2.3bn. The company sold 6.6m Xbox consoles and search advertising revenue grew 23pc.

However, OEM Pro and OEM non-pro revenues declined 13pc each.

The company reported Commercial revenues grew 5pc to US$13.3bn, which included a 114pc increase in commercial cloud revenues of US$5.5bn from subscriptions to Office 365, Azure and Dynamic CRM Online.

Office revenues declined by 1pc while Server products and service grew 9pc with double-digit growth of SQL Server and System Center.

To boldly go …

“Microsoft is continuing to transform, executing against our strategic priorities and extending our cloud leadership,” said Satya Nadella, chief executive officer of Microsoft.

“We are taking bold steps forward across our business, and specifically with Windows 10, to deliver new experiences, new categories, and new opportunities to our customers.”

Last week Microsoft unveiled its Windows 10 operating system along with a new computing paradigm called HoloLens.

The company also revealed that its Office 16 products will begin to ship later in 2015.

“We again saw enthusiasm and demand around our cloud offerings like Office 365, Dynamics CRM Online and Azure, as well as Surface Pro 3,” said Kevin Turner, chief operating officer at Microsoft.

“Our sales engagement worldwide continues to focus on helping customers and partners transition to the cloud and navigate the shifting product mix related to our services and solutions.”

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years