The booming cloud business keeps Microsoft on course for growth. The group increased its sales year-on-year by a fifth to 51.7 billion US dollars (45.7 billion euros). Financial analysts had expected an average of around $ 50.9 billion. The bottom line is that Microsoft earned almost $18.8 billion net in the second quarter of the financial year 2022, which ended in December – an increase of 21 percent year-on-year. Operating profit increased even more, by 24 percent to $22.2 billion.
The cloud business with software and services from the network was once again a growth driver. Those sales are up 32 percent to $22.1 billion Microsoft announced after the US market closed on Tuesday has. With the Azure cloud platform, with which Microsoft competes with Amazon’s AWS division, among others, for the favor of small and large companies, sales have grown by 46 percent. So far, however, investors are used to growth of more than 50 percent.
Some industry observers then saw the somewhat slower growth as the trigger for the fact that the Microsoft share initially lost a good five percent after the figures were presented in after-hours trading. In the conference call with analysts, CFO Amy Hood then promised higher growth for the current quarter.
Forecast for current quarter above expectations
Accordingly, Microsoft expects sales of between 48.5 and 49.3 billion dollars for the current quarter. That’s higher than analysts were expecting $48.2 billion for this quarter CNBC reported. The share recovered and was temporarily up around three percent before the price gains melted away again.
Microsoft launched its new Windows 11 operating system at the beginning of the reporting quarter. Revenues in the Windows business with PC manufacturers have increased by a quarter. According to Microsoft boss Satya Nadella, 1.4 billion systems in the world are currently running Windows 10 or Windows 11. In April 2021 there were 1.3 billion Windows 10 PCs.
LinkedIn and Xbox are also growing
The LinkedIn career network, which belongs to the Group, continues to show strong growth. LinkedIn has increased its revenue by 37 percent. In the previous quarter, however, the increase was even higher at 42 percent.
Microsoft continues to feel the shortage of chips in the Xbox games console, which is why it is still difficult to buy the new generation of devices. Xbox hardware revenues are up four percent year over year. Microsoft’s gaming business as a whole has grown by ten percent. To strengthen this division, Microsoft wants to buy the game company Activision Blizzard for 69 billion US dollars. (with dpa material) /