Microsoft posts strong Q2 results driven by cloud growth-Xinhua

Microsoft posts strong Q2 results driven by cloud growth

Source: Xinhua| 2026-01-29 08:04:45|Editor:

SAN FRANCISCO, Jan. 28 (Xinhua) -- Microsoft said Wednesday its revenue reached 81.3 billion U.S. dollars in the second quarter of fiscal year 2026, up 17 percent year on year, driven by a strong growth in its cloud computing business.

The company's GAAP net income for the quarter stood at about 38.5 billion dollars, a 60 percent increase from the same period last year, according to its financial report. Microsoft's fiscal year 2026 ends on June 30.

Microsoft cloud revenue totaled 51.5 billion dollars, up 26 percent year on year, and the company's commercial remaining performance obligation rose 110 percent to 625 billion dollars. Revenue from the intelligent cloud segment stood at 32.9 billion dollars, a 29-percent increase.

Its revenue in productivity and business processes was 34.1 billion dollars, increasing 16 percent, while the revenue in more personal computing was 14.3 billion dollars, decreasing 3 percent.

The diluted earnings per share on a GAAP basis were 5.16 dollars and increased 60 percent, and on a non-GAAP basis were 4.14 dollars and increased 24 percent, according to the report.

"We are only at the beginning phases of AI diffusion and already Microsoft has built an AI business that is larger than some of our biggest franchises," said Microsoft chairman and CEO Satya Nadella, adding that the company is pushing the frontier across its entire AI stack.

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