Microsoft Earnings Report for Q2 2017: Revenue reaches $26B fueled by cloud services

Microsoft released its 2017 Q2 earnings yesterday, reporting $26.1 billion in revenue and confirming the close of its LinkedIn acquisition during the quarter ending on December 31, 2016.

The company reported a number of increases in revenue across its Productivity and Business Processes lines, with revenue in this area reaching $7.4 billion. Its Office consumer products and cloud services revenue was up 22 percent, with Office 365 consumer subscribers growing to 24.9 million.

Office commercial product revenue and cloud services was up 5 percent, with Office 365 commercial revenue up 47 percent. Dynamics product revenue increased 7 percent.

Microsoft reported revenue from LinkedIn was $228 million for the quarter.

The company’s Intelligent Cloud revenue was up 8 percent at $6.9 billion. The biggest gain in this area came from Microsoft’s Azure cloud computing service, up 93 percent — more than doubling year over year.

“Accelerating advancements in AI across our platforms and services will provide further opportunity to drive growth in the Microsoft Cloud,” said CEO Satya Nadella, in an announcement covering Microsoft’s earnings.

CFO Amy Hood said she was pleased with the quarter’s results as well, also mentioning Microsoft’s cloud services growth: “We see strong demand for our cloud-based services and are executing well on our long-term growth strategy.”

While cloud services was up, the company’s revenue from its More Personal Computing dropped 5 percent, at $11.8 billion for the quarter.

Bing’s search ad revenue was up 10 percent.

Here’s a quick rundown of year-over-year percentage changes in revenue for a selection of Microsoft’s products and services:

Microsoft Selected Product and Service Revenue YOY Percentage Change

A thorough breakdown of Microsoft’s earning can be found in the slides it released in conjunction with yesterday’s earnings call: Microsoft 2017 Q2 Earnings Call Slides.

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Amy Gesenhues

Amy Gesenhues is Third Door Media's General Assignment Reporter, covering the latest news and updates for Marketing Land and Search Engine Land. From 2009 to 2012, she was an award-winning syndicated columnist for a number of daily newspapers from New York to Texas. With more than ten years of marketing management experience, she has contributed to a variety of traditional and online publications, including MarketingProfs.com, SoftwareCEO.com, and Sales and Marketing Management Magazine. Read more of Amy's articles.