- Azure cloud revenue grew 30% year-over-year, exceeding expectations and continuing to drive Microsoft’s growth.
- Microsoft closed its $68.7 billion acquisition of Activision Blizzard, positioning itself as a gaming powerhouse.
- Beyond cloud and gaming, Microsoft saw growth in Productivity (including Office), LinkedIn, Windows, and Surface, with revenue up 13-19%.
Microsoft reported its fiscal second quarter 2024 earnings on January 30th, beating analyst expectations and showing impressive growth, especially in its cloud and gaming businesses.
Strong Performance for Azure Cloud
Microsoft’s Intelligent Cloud segment, which includes Azure, posted revenue of $25.88 billion, up 20% year-over-year. Azure cloud revenue itself grew 30%, exceeding expectations. Azure continues to drive Microsoft’s growth as more businesses move to the cloud.
Gaming Gets a Boost from Activision Blizzard Acquisition
During Q2, Microsoft closed its $68.7 billion acquisition of video game publisher Activision Blizzard. This represents Microsoft’s largest deal ever and demonstrates its commitment to gaming. While Microsoft did cut some jobs in gaming post-acquisition, the Activision deal positions Microsoft as a gaming powerhouse.
Windows and Productivity Revenue Also Grows
Beyond cloud and gaming, Microsoft saw growth in other areas. The Productivity and Business Processes segment, including Office and LinkedIn, delivered $19.25 billion in revenue, up 13%. The More Personal Computing segment, including Windows and Surface, hit $16.89 billion in revenue, a 19% increase.
Strong Results to Start 2024
With standout growth for Azure and its major Activision Blizzard acquisition, Microsoft is showing strong momentum in early 2024. The company beat expectations with earnings per share of $2.93 on revenue of $62.02 billion. As businesses accelerate their move to the cloud, Microsoft is poised to continue growing in 2024 and beyond.
