Microsoft said Azure delivered revenue growth of 30% in its fiscal second quarter and CEO Satya Nadella noted that moved from "talking about AI to applying AI at scale."

The company reported second-quarter net income of $21.9 billion, or $2.93 a share, on revenue of $62 billion, up 18% from a year ago. Wall Street was looking for fiscal second quarter revenue of $61.12 billion with non-GAAP earnings of $2.78 a share.

CFO Amy Hood noted that Microsoft Cloud revenue was $33.7 billion, up 24% from a year ago due to "strong execution by our sales teams and partners."

Microsoft said revenue in its productivity and business processes unit was $19.2 billion, up 13% from a year ago, with Office commercial and cloud services revenue gaining 15%. Dynamics had revenue growth of 21%.

For the Intelligent Cloud unit, powered by Azure, second quarter revenue was up 20% from a year ago. The personal computing division saw Windows revenue gain 9% from a year ago.  

Azure revenue in the second quarter accelerated sequentially.

Speaking on Microsoft's earnings conference call, Nadella said:

  • "We now have 53,000 Azure AI customers over a third are new to Azure over the past 12 months."
  • "We are seeing larger and more strategic Azure deals with an increase in the number of billion dollar plus Azure commitment."
  • "We now have over 1.3 million paid GitHub Copilot subscribers, up 30% quarter over quarter, and more than 50,000 organizations."

As for the outlook, Hood said Azure fiscal third quarter revenue growth will be stable to stronger than the second quarter. 

Also see: How Generative AI Has Supercharged the Future of Work | Generative AI articles | Why you need a Chief AI Officer | Software development becomes generative AI's flagship use case | Enterprises seeing savings, productivity gains from generative AI | Work in a generative AI world will need critical, creative thinking

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