Microsoft has released its financial results for the second fiscal quarter of 2020 (Q4 2019 by calendar year). Overall, the company performed well, but its cloud business stole the show.
In the second quarter of the year, Microsoft reported revenue of $36.9 billion and a net income of $11.6 billion. Its Surface department had a solid quarter, with revenue rising six percent. Earnings from its Office products and Windows 10 also rose, driven in part by the unplugging of Windows 7.
Microsoft's gaming department performed poorly in comparison with the previous year, with revenue falling 21 percent. The company says the figures are indicative of a particularly strong 2019, as opposed to failures this year.
Microsoft's suite of cloud business saw the greatest rise. Office Commercial products and cloud services revenue jumped 16 percent for the quarter. Office Consumer revenue also showed strong growth, rising 19 percent as Office 365 subscriptions surpassed 37 million.
Commercial cloud revenue rose a huge 29 percent compared to the previous year, hitting $12.5 billion and pushing the company's annual run rate to $50 billion.
“Tech spend as a percentage of GDP is projected to double over the next decade. At Microsoft, we are focused on building the most differentiated tech stack to enable every organisation in every industry to build their own digital capability and tech intensity, with a business model that is trusted and aligned with their success in this new era,” CEO Satya Nadella said in a statement.
Microsoft’s full earnings report can be found here.