Microsoft Q2 FY24 revenue skyrockets to $62bn, boosted by Activision Blizzard acquisition
In a significant announcement for the tech industry, Microsoft Corp. unveiled its financial results for the quarter ended December 31, 2023 (Q2 FY24). The report highlighted an impressive 18% increase in revenue, reaching $62.0 billion, compared to the corresponding period of the last fiscal year.
The results reveal that Microsoft’s operating income soared to $27.0 billion, marking a 33% increase, with a 25% rise in non-GAAP terms (up 23% in constant currency). Similarly, net income demonstrated a significant growth of 33%, reaching $21.9 billion, and a 26% increase non-GAAP (up 23% in constant currency). Diluted earnings per share also showed a remarkable 33% growth, standing at $2.93, and a 26% increase non-GAAP (up 23% in constant currency).
A notable highlight of this quarter was Microsoft’s completion of the acquisition of Activision Blizzard, Inc. (“Activision”) on October 13, 2023. The financial results from the acquired business are now included in Microsoft’s More Personal Computing segment. This acquisition significantly contributed to a 61% increase in Xbox content and services revenue (up 60% in constant currency).
Microsoft’s Chairman and CEO, Satya Nadella, emphasized the company’s focus on AI, stating, “We’ve moved from talking about AI to applying AI at scale.” He highlighted the integration of AI across Microsoft’s tech stack as a key driver in attracting new customers and enhancing productivity across sectors.
Amy Hood, Executive Vice President and Chief Financial Officer at Microsoft, attributed much of the success to the company’s cloud segment. “Strong execution by our sales teams and partners drove Microsoft Cloud revenue to $33.7 billion, up 24% (up 22% in constant currency) year-over-year,” she said.
Microsoft Corp. Reports Stellar Growth with $62.0 Billion Revenue in Q2 FY24
Business Segment Performance
The report detailed performances across various business segments:
– Productivity and Business Processes: Revenue reached $19.2 billion, an increase of 13% (up 12% in constant currency).
– Intelligent Cloud: Revenue stood at $25.9 billion, up by 20% (up 19% in constant currency).
– More Personal Computing: Revenue was $16.9 billion, an increase of 19% (up 18% in constant currency).
Microsoft also returned $8.4 billion to shareholders in the form of share repurchases and dividends during the second quarter of fiscal year 2024. This return signifies the company’s robust financial health and commitment to shareholder value.
The latest financial results from Microsoft Corp. underscore the company’s strong position in the global tech industry. The successful integration of Activision Blizzard and the strategic focus on AI and cloud services have played pivotal roles in driving this growth. Microsoft’s ability to adapt and innovate in a rapidly evolving tech landscape continues to be a key factor in its financial success and market dominance.