Microsoft is doing better than analysts predicted in the second quarter of fiscal 2022. The entire company is growing, although the cloud is doing slightly less well than hoped.
Microsoft is already posting solid quarterly figures. For the second quarter of its fiscal year 2022, Redmond pulled in $51.7 billion. That’s up 20 percent from a year earlier. Profits rose to $18.8 billion: up 21 percent from last year’s second quarter.
Delay in cloud
Analysts are least pleased with the growth of Microsoft’s cloud segment. The Azure and other cloud services branch is growing at a handsome 46 percent, but that growth was above 50 percent in previous quarters. In other words, the Azure cloud is still growing at breakneck speed, but the acceleration is slowing slightly. That made itself felt in Microsoft’s shares, which dipped briefly.
Otherwise, however, the quarterly report looks rosy. All departments are growing. Driven by Windows 11, the Windows OEM business is seeing 25 percent growth and Office is also doing well. The professional version accounts for a 19 percent increase in sales while the consumer version of Office is up 15 percent. All departments within Microsoft see their sales increase by 10 percent or more except the hardware division. Surface has to be satisfied with 8 percent.
Gaming
In gaming, sales increased 10 percent. Microsoft has huge ambitions in that department. After all, the company is setting aside $68.7 billion to take over game studio Activision Blizzard in its biggest acquisition ever.
Meanwhile, Microsoft also announces that the number of monthly active Windows and Teams users is growing nicely. About the enthusiasm for upgrading to Windows 11, Redmond remains quiet, though.