FY16 Q2 - Intelligent Cloud Performance - Investor Relations - Microsoft

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Earnings Release FY16 Q2

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Intelligent Cloud

Intelligent Cloud revenue increased $302 million or 5%, mainly due to higher server products and cloud services revenue, as well as higher Enterprise Services revenue. Intelligent Cloud revenue included an unfavorable foreign currency impact of approximately 6%. Our server products and cloud services revenue grew $153 million or 3%, driven by revenue growth from Microsoft Azure of 127% and higher revenue from Microsoft SQL Server, offset in part by lower revenue from Windows Server. Server products and services revenue included an unfavorable foreign currency impact of approximately 7%. Enterprise Services revenue grew $123 million or 10%, mainly due to growth in Premier Support Services.

Intelligent Cloud operating income decreased slightly, primarily due to higher operating expenses, offset in part by higher gross margin. Operating expenses increased $212 million or 11%, mainly due to higher research and development expenses of $145 million or 23%, driven by headcount-related expenses. Gross margin increased $192 million or 4%, driven by revenue growth from our server products and cloud services. Gross margin included an unfavorable foreign currency impact of approximately 7%. Cost of revenue increased $110 million or 7%, primarily driven by Microsoft Azure.

IMPORTANT NOTICE TO USERS (summary only, click here  for full text of notice); All information is unaudited unless otherwise noted or accompanied by an audit opinion and is subject to the more comprehensive information contained in our SEC reports and filings. We do not endorse third-party information. All information speaks as of the last fiscal quarter or year for which we have filed a Form 10-K or 10-Q, or for historical information the date or period expressly indicated in or with such information. We undertake no duty to update the information. Forward-looking statements are subject to risks and uncertainties described in our  Forms 10-Q and 10-K.

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Information contained in these documents is current as of the earnings date, and not restated for new accounting standards

FY16 Earnings Release Schedule

  • Q3-Thursday, April 21
  • Q4-Tuesday, July 19

Microsoft Corp (MSFT)

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