Microsoft confirms position as #1 cloud vendor

Microsoft has announced its results for Q2 and revealed stunning growth across the board including a 32 percent increase in cloud revenue – worth $22bn on the quarter – confirming its position as the number one cloud vendor.

Its Dynamics business grew by 45 percent compared to the same period last year while its security and cyber business increased by 46 percent and Azure was up by the same number. In all, Microsoft generated more than $50bn in quarterly revenue – the biggest quarter in its history. But, in early trading after the announcement, its shares tumbled by more than 6 percent following the revelation that Azure (despite its 46 percent growth) had actually decelerated compared to previous quarters.

A later statement that painted a rosier forward-looking picture caused shares to rally and close up nearly 7 percent.

Operating income increased 24 percent to $22.2bn, while diluted earnings per share were $2.48, an increase of 22 percent.

Satya Nadella, chairman and chief executive officer of Microsoft, said: “Digital technology is the most malleable resource at the world’s disposal to overcome constraints and reimagine everyday work and life. As tech as a percentage of global GDP continues to increase, we are innovating and investing across diverse and growing markets, with a common underlying technology stack and an operating model that reinforces a common strategy, culture, and sense of purpose.”