Microsoft Hits New All-Time High As Q2 Cloud, Azure Business Overshadow Xbox Release

Microsoft Corporation MSFT reported second-quarter earnings after the stock hit a new all-time high on Tuesday.

What Happened: Revenue increased 17% year-over-year to $43.1 billion for Microsoft, beating street consensus estimates of $40.2 billion.

Net income increased 33% year-over-year and earnings per share of $2.03 came in well ahead of Street consensus estimates of $1.64.

The highlight for Microsoft in the quarter was the growth of the cloud-related businesses. Commercial cloud was up 34% year-over-year to $16.7 billion across all business segments.

Intelligent Cloud revenue was up 23% year-over-year to $14.6 billion, marking the segment that saw the biggest comparable increase. The Azure business inside the intelligent cloud segment saw revenue increase 50% year-over-year.

Related Link: Microsoft Analysts: Q1 Shows Payoff From Cloud Shift, Azure Narrowing The Gap With AWS

The Xbox business had growth of 40% year-over-year and helped the More Personal Computing segment report 14% year-over-year growth and the largest segment revenue total of $15.1 billion.

Productivity and Business Processes segment revenue was $13.4 billion, a year-over-year increase of 13%.

"We continue to benefit from our investments in strategic, high-growth areas," said Microsoft CFO Amy Hood. 

MSFT Price Action: Shares of Microsoft hit all-time highs of $234.18 in Tuesday’s trading session. Shares are up 5% to $243.57 in after-hours trading.