Browse Prior Earnings Releases:
Earnings Release FY21 Q2
Intelligent Cloud
Revenue increased $2.7 billion or 23%.
• Server products and cloud services revenue increased $2.6 billion or 26%, driven by Azure. Azure revenue grew 50%, due to growth in our consumption-based services. Server products revenue increased 4%, driven by hybrid and premium solutions, offset in part by continued transactional weakness, on a strong prior year comparable that benefited from demand related to Windows Server 2008 end of support.
• Enterprise Services revenue increased $83 million or 5%, driven by growth in Premier Support Services.
Operating income increased $2.0 billion or 43%.
• Gross margin increased $2.4 billion or 29%, driven by growth in server products and cloud services and the change in estimated useful lives of our server and network equipment. Gross margin percentage increased with the change in estimated useful lives of our server and network equipment. Excluding this impact, gross margin percentage increased slightly, driven by gross margin percentage improvement in Azure, offset in part by sales mix shift to Azure.
• Operating expenses increased $436 million or 12%, driven by investments in Azure.
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Information contained in these documents is current as of the earnings date, and not restated for new accounting standards