Microsoft Q2 FY19 Earnings: Azure shines once again, revenue grew 76%

Microsoft today announced FY19 Q2 earnings results. The revenue was $32.5 billion and the operating income was $10.3 billion. Revenue in Intelligent Cloud was $9.4 billion and it increased 20%, with the following business highlights:

Microsoft reported that Server products and cloud services revenue increased 24% driven by Azure revenue growth of 76%. Enterprise services revenue increased 6%.

Enterprise Mobility is a strong growth area for Microsoft and their installed base increased to 94 million (up from 88 million) which is a 57% growth. Server products revenue including Windows and SQL server grew just 3%, thanks to customer demand for premium server versions and hybrid solutions.

The gross margin dollars of this division grew 20%. The gross margin percentage increased because of material improvements in Azure gross margin offset by an increased mix of cloud offerings.

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