Microsoft Q2 FY20 Earnings: Azure revenue grew 62%

Microsoft today announced FY20 Q2 earnings results. The revenue was $36.9 billion and the operating income was $13.9 billion. Revenue in Intelligent Cloud business segment was $11.9 billion and it increased 27% when compared to last year. Microsoft offered the following business highlights related to Intelligent Cloud business segment.

Microsoft reported that Server products and cloud services revenue increased 30% driven by Azure revenue growth of 62% (64% in constant currency). For comparison, Microsoft reported Azure revenue growth of 76% in Q2 2019. Enterprise services revenue increased 6%.

Enterprise Mobility continues to grow and its installed base increased to 127 million which is a 35% growth. Server products revenue including Windows and SQL server grew 10%, thanks to Windows Server 2008 and SQL Server 2008 end of support.

The gross margin dollars of this division grew 28%. The gross margin percentage increased because of material improvements in Azure gross margin offset by an increased mix of cloud offerings.