Microsoft's fiscal second quarter earnings highlighted commercial cloud momentum, a big Windows 7 end of life push to Windows 10 and solid results across its business units.
The company reported second quarter earnings of $11.6 billion, or $1.51 a share, on revenue of $36.9 billion, up 14% from a year ago.
Wall Street was expecting Microsoft to report fiscal second quarter revenue of $35.67 billion with earnings of $1.32 a share.
The company said commercial cloud revenue was up 29% from a year ago to $12.5 billion. That tally puts Microsoft's commercial cloud on a $50 billion annual run rate.
In a statement, CEO Satya Nadella said the company is innovating with its technology stack and saw "expanding opportunity ahead." On a conference call, Nadella added:
Tech spend as a percentage of GDP is projected to double over the next decade. At Microsoft, we are focused on building the most differentiated tech stack to enable every organization in every industry to build their own digital capability and tech intensity, with a business model that is trusted and aligned with their success in this new era. Now I'll briefly highlight our innovation momentum, starting with Azure. Every customer will need a distributed computing fabric across the cloud and the edge to power their mission-critical workloads and meet regulatory as well as operational solvency needs.
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