1/3rd of Microsoft’s Q2 earnings come from cloud computing

Teodor Nechita
by Teodor Nechita
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Microsoft will soon be posting its fiscal Q2 earnings this Wednesday, and it seems that this year has been quite profitable for the tech giant.

Microsoft’s earnings based on segments

  • More Personal Computing Segment
    • This segment is made up of earnings from Windows, Surface, search ads, and gaming
      • At the end of the fiscal quarter, it grossed over  $11.13 billion in revenue. 
  • Intelligent Cloud segment
    • This includes Microsoft’s cloud-computing service Azure along with Windows Server, SQL Server, System Center, GitHub and consulting.
      • At the end of the fiscal quarter, it grossed over  $10.85 billion in revenue.

Much of the revenue is thanks to the military

One of Microsoft’s biggest financial breakthroughs this year was the $10 billion military cloud contract. In fact, Microsoft has shown a tendency to lean more towards the cloud segment as of late.

All in all, analysts consider Microsoft to currently be in a very stable spot financially. Not only does it maintain the biggest share of the OS market, but through its services like Azure, it can now compete with other giants of the industry, such as Amazon.

According to initial reports, Microsoft’s final revenues stand at around $35.68 billion, which means a growth of around 9.8% growth from a year ago.

What do you think about Microsoft’s focus on cloud technology? Share your thoughts in the comments section below.