Microsoft Earnings Release FY17 Q2: No surprise, Microsoft Cloud powers second quarter results

Microsoft has released its earnings for Q2 2017 (Q4 CY 2016), as follows:

• Revenue was $24.1 billion GAAP, and $26.1 billion non-GAAP
• Operating income was $6.2 billion GAAP, and $8.2 billion non-GAAP
• Net income was $5.2 billion GAAP, and $6.5 billion non-GAAP
• Diluted earnings per share was $0.66 GAAP, and $0.83 non-GAAP

Just as he did in describing Q1 results, Microsoft CEO Satya Nadella touted digital transformation (read that, "cloud migration") as a key driver:

Our customers are seeing greater value and opportunity as we partner with them through their digital transformation. Accelerating advancements in AI across our platforms and services will provide further opportunity to drive growth in the Microsoft Cloud.

Microsoft of course completed the acquisition of LinkedIn on December 8, 2016, and financial results from that acquisition are reported in the Productivity and Business Processes segment, alongside Office commercial products and Dynamics (with Dynamics 365 being its brightest flame).

Revenue in Productivity and Business Processes was $7.4 billion and increased 10% (up 12% in constant currency), with these highlights:

• Dynamics products and cloud services revenue increased 7% (up 9% in constant currency) driven chiefly by Dynamics 365 revenue growth
• Office commercial products and cloud services revenue increased 5% (up 7% in constant currency) driven by Office 365 commercial revenue growth of 47% (up 49% in constant currency)
• LinkedIn contributed revenue of $228 million for the period beginning on December 8, 2016.

There is more to unwrap surrounding LinkedIn: while it contributed revenue of $228 million even while coming late to the Q2 2017 party, operating income, net income, and diluted earnings per share were ...