Microsoft Sees Commercial Cloud Strength in Challenging Q2 2016 Results

Microsoft reported $23.8 billion in revenue and $6 billion in operating income today in its Q2 2016. Revenue fell 10% year over year in GAAP terms, but operating income grew 13% and net income was up 20% in non-GAAP constant currency terms.

Among the quarter's highlights, the company reported that the Commercial cloud annual run rate now exceeds $9.4 billion

Many of the highlights were framed in constant currency (CC) terms to address negative foreign currency changes. Within the Productivity and Business Processes segment, Office 365 revenue climbed, the Dynamics AX installed base grew, and CRM Online seat adds more than doubled year over year as the Dynamics product line saw 11% CC revenue growth


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About Jason Gumpert

As the editor of, Jason oversees all editorial content on the site and at our events, as well as providing site management and strategy. He can be reached at

Prior to co-founding, Jason was a Principal Software Consultant at Parametric Technology Corporation (PTC), where he implemented solutions, trained customers, managed software development, and spent some time in the pre-sales engineering organization. Jason has also held consulting positions at CSC Consulting and Monitor Group.

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