Microsoft Q2 report shows massive growth

Last week, Microsoft announced its plans to acquire Activision Blizzard for a deal valued at $68.7 billion. It’s one of the largest gaming company acquisitions of all time, and it could make Microsoft one of the leading gaming publishers in the world if the deal goes through. It appears that Microsoft has plenty of ways to make money, and the latest quarterly financial results show massive growth for the company.

The latest financial quarter ending on December 31, 2021 shows that Microsoft earned $51.7 billion in revenues, with a net income of $18.8 billion. Both values represent a 20% increase over the 2020 reports for the same period, and it’s impressive to see such a massive jump in earnings. The operating income was $22.2 billion and increased 24%. Microsoft reported $45,3 billion in revenues for Q3, 2021.

“Digital technology is the most malleable resource at the world’s disposal to overcome constraints and reimagine everyday work and life,” said Satya Nadella, chairman and chief executive officer of Microsoft. “As tech as a percentage of global GDP continues to increase, we are innovating and investing across diverse and growing markets, with a common underlying technology stack and an operating model that reinforces a common strategy, culture, and sense of purpose.”

Microsoft says that its key products, such as Microsoft Office, cloud services, and Windows grew significantly. Office and other commercial products and cloud services revenue rose 14%, while Office 365 saw a 19% increase. Windows commercial products, Surface hardware lineup, and Xbox services also managed $17.5 billion in revenue. The PC market was also booming in 2021 thanks to the pandemic, and it’s not surprising to see Windows make an appearance.

Demand is also high for the Xbox Series X / S consoles, and it has been for over a year, the revenue was up 4%. With the Activision Blizzard deal and Xbox Game Pass having more than 25 million paid subscribers, we’ll likely see this sector grow even more in the coming months and years ahead. Microsoft also paid out $10.9 billion to shareholders in dividends and share purchases, which is 9% more than in 2021.