Microsoft reports Q2 revenue up 17% YoY to $81.3B, operating income up 21% to $38.3B, net income up 60% to $38.5B, and Microsoft Cloud revenue up 26% to $51.5B (Microsoft)
ThinkingNews Desk · how this was written
Microsoft reported second-quarter revenue of $81.3 billion, a 17 percent increase year over year, while its cloud segment grew 26 percent to $51.5 billion. Azure revenue rose 39 percent year over year, and the cloud-computing business slightly exceeded quarterly expectations. Overall, the company posted strong growth in its cloud services despite a decline in gaming revenue.
Written from all 3 reports below, not from any single one.
How it was reported
- TechMeme·Microsoft reports Q2 revenue up 17% YoY to $81.3B, operating income up 21% to $38.3B, net income up 60% to $38.5B, and Microsoft Cloud revenue up 26% to $51.5B (Microsoft)
Microsoft's Q2 revenue rose 17% to $81.3B. Operating income increased 21% to $38.3B, and net income jumped 60% to $38.5B. Microsoft Cloud revenue grew 26% to $51.5B.
- The Verge·Microsoft reports strong cloud earnings in Q2 as gaming declines
Microsoft reported $81.3 billion in revenue and $30.9 billion in net income. Revenue increased 17 percent and net income rose 23 percent. PC shipments grew amid a RAM shortage, partly driven by Microsoft's efforts.
- TechMeme·Microsoft Q2 gaming revenue fell 9% YoY, including a 32% drop in Xbox hardware revenue and a 5% decline in Xbox content and services, which includes Game Pass (Tom Warren/The Verge)
Microsoft's Q2 gaming revenue fell 9% year-over-year. Xbox hardware revenue dropped 32%, while Xbox content and services, including Game Pass, declined 5%. Microsoft's More Personal Computing division posted a revenue decline.
- TechMeme·Microsoft says capital expenditures for Q2 hit $37.5B, exceeding analyst estimates for $36.2B; MSFT drops 4%+ after hours (Matt Day/Bloomberg)
Microsoft's capital expenditures reached $37.5B in Q2, exceeding estimates of $36.2B. The company's spending surged to a record high, sparking investor concerns. Microsoft's shares dropped over 4% after hours.
- TechMeme·Microsoft reports Azure Q2 revenue up 39% YoY, vs. 38.8% est.; Microsoft cloud's contracted backlog grew 110% to $625B, ~45% of which was driven by OpenAI alone (Reuters)
Microsoft's Azure revenue increased 39% year-over-year. The company's cloud contracted backlog grew 110% to $625B, with 45% driven by OpenAI. Microsoft's cloud-computing business slightly exceeded quarterly revenue expectations.
- TechCrunch·Microsoft gained $7.6B from OpenAI last quarter
Microsoft gained $7.6B from OpenAI last quarter. The company is a major investor in the AI lab. This profit reflects OpenAI's significant growth.
Related stories
- Microsoft discloses Azure revenue as part of major financial reporting changes3 outlets
- Microsoft filings suggest "around 70%" of its AI revenue is on OpenAI3 outlets
- NVIDIA beats again, guides to $91bn for Q2 and authorises another $80bn of buybacks3 outlets
- Nvidia says its commitments to component suppliers for its AI chips and systems hit $279B in Q2, up from $119B in Q1, $95.2B in Q4 2025, and $50.3B in Q3 2025 (Asa Fitch/Wall Street Journal)3 outlets