Microsoft Q2 2020: revenue jumps 14 percent to $36.9 billion, driven by cloud business

The company's Azure cloud business grew a whopping 62 percent

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Microsoft generated $36.9 billion USD (approximately $48.7 billion CAD) in revenue the second quarter of 2020, the company disclosed in its latest earnings report.

This marks a 14 percent increase in revenue over Q1 2020. Meanwhile, the Redmond, Washington-based tech giant’s net income for Q2 came in at $11.6 billion USD (approximately $15.3 billion CAD), representing a 38 percent growth from the prior quarter.

Specifically, Microsoft’s ‘More Personal Computing’ division — which is made up of Windows, Surface, Xbox and Bing — was the biggest moneymaker. This business increased by two percent year-over-year to $13.2 billion USD (approximately $17.4 billion CAD) in revenue.

Breaking down this category further:

  • Windows OEM revenue increased 18 percent
  • Windows Commercial products and cloud services revenue increased 25 percent
  • Surface revenue and Search advertising revenue each increased by six percent
  • Xbox content and services revenue decreased 11 percent

Meanwhile, Intelligent Cloud — which consists of Azure, GitHub and server enterprise — raked in $11.9 billion USD (approximately $15.7 billion CAD) and increased by 27 percent. Azure, in particular, grew a massive 62 percent from quarter-to-quarter.

Finally, Microsoft’s Revenue in Productivity and Business Processes (Office, Linkedin and Dynamics) accounted for $11.8 billion (approximately $15.6 billion CAD) — up 17 percent year-over-year. Notably, Office Commercial products and services revenue jumped 16 percent, while Office Consumer products and services rose by 19 percent.

Source: Microsoft