Microsoft Q2 2022 results: Azure contracts power cloud performance

Microsoft today announced Q2 FY2022 performance with earnings per share of $2.48 on revenue of $51.7 billion. Net income was $18.8 billion.

“Solid commercial execution, represented by strong bookings growth driven by long-term Azure commitments, increased Microsoft Cloud revenue to $22.1 billion, up 32% year over year” said  Microsoft CFO and EVP Amy Hood in a statement.

The consensus earnings estimate was $2.32.

Among the strong performances in the Productivity and Business Process segment, which generated $15.9 billion overall, Dynamics 365 revenue grew 45% to boost overall Dynamics revenue 29%. Power Apps grew 161%. LinkedIn revenue grew 37%, while Office 365 Commercial revenue saw growth of 19%.

Azure and other cloud services revenue grew 46%, pushing server products and cloud services revenue overall up 29%.

In earnings slides, the company credited "an increase in larger, long-term Azure contracts and strong execution across our core annuity sales motions" as key to the growth in Commercial bookings

In Q1 FY2022, Microsoft reported income of $20.5 billion on revenue of $45.3 billion and $2.71 earnings per share, with Azure revenue growing 50% and Dynamics 365 revenue growth of 48%.

A year ago in Q2 FY2021, the company delivered earnings of $43.1 billion with Azure revenue growth of 50%.