EARNINGS REVIEW
Microsoft FY22 Q2 earnings report
Historical earnings report · Management guidance reflects expectations at the time of the release, not subsequent outcomes. The financial comparison uses the site’s normalized dataset, including comparative figures restated in later filings.
Long-term Azure commitments and cloud demand were central growth drivers.
Assessment · Long-term Azure commitments and cloud demand were central growth drivers. An operating margin of 43.0% alongside quarterly FCF of 8.615 B$ distinguishes earnings from the investment burden.
01 Business performance
Segment revenue is rounded as in the release. Microsoft Cloud spans segments and is not identical to Intelligent Cloud. Comparisons must distinguish fiscal and calendar years, segment reclassification and acquisition effects.
| Business segment | Revenue B$ | Year over year | Operating income B$ |
|---|---|---|---|
| Productivity and Business Processes | 15.936 | 19% | 7.688 |
| Intelligent Cloud | 18.327 | 26% | 8.197 |
| More Personal Computing | 17.465 | 15% | 6.362 |
02 Earnings quality
Consolidated operating income of 22.247 B$ on revenue of 51.728 B$ implies a 43.0% operating margin. Net income was 18.765 B$; the -3.482 B$ difference from operating income combines nonoperating and tax effects. The entire difference is not classified as cash earnings or a one-off item.
03 Cash flow, investment and financial position
On the common quarterly comparison basis, OCF of 14.480 B$ less cash CapEx of 5.865 B$ produced FCF of 8.615 B$. CapEx/revenue was 11.3% and FCF margin was 16.7%. Cash remained after capital investment, but this is before dividends, repurchases, acquisitions and debt repayment.
Quarter-end cash and current investments were 125.369 B$, interest-bearing borrowings at carrying amount were 53.258 B$, and net cash was 72.111 B$. Borrowings include current and noncurrent debt and exclude separately disclosed lease liabilities. Negative net cash means net debt. Total liabilities, which also include trade payables and leases, are a different measure.
04 Management commentary and contemporaneous outlook
Hood described bookings growth driven by long-term Azure commitments. Microsoft Cloud revenue spans businesses and is not the same as the Intelligent Cloud segment.
The release directs readers to the earnings call for quantitative forward guidance. This report is release-based and does not insert unreviewed call-guidance figures.
05 Interpretation and follow-up checks
Separate Azure and Microsoft 365 demand from PCs and gaming. Even with rising AI demand, data-center investment, leases and revenue recognition occur at different times; bookings alone do not establish cash profitability.
The earlier quarter required for consolidated year-over-year comparison lies before the normalized dataset begins. Segment growth uses comparison figures directly available in the original release; missing consolidated comparisons are not filled with zero or estimates.
Quarterly results · CY-aligned view
| Metric · B$ | 2021 total of 2 included quarters | 3Q FY22 Q1 2021-09-30 | 4Q FY22 Q2 2021-12-31 | QoQ Δ | YoY Δ |
|---|---|---|---|---|---|
| Revenue | 97.045 | 45.317 | 51.728 | 6.411 | — |
| Operating income | 42.485 | 20.238 | 22.247 | 2.009 | — |
| Operating margin (%) | 43.779 | 44.659 | 43.008 | −1.651 pp | — |
| Net income | 39.270 | 20.505 | 18.765 | −1.740 | — |
| FCF · calculated | 27.345 | 18.730 | 8.615 | −10.115 | — |
| Operating cash flow · total | 39.020 | 24.540 | 14.480 | −10.060 | — |
| Net cash CapEx · common | 11.675 | 5.810 | 5.865 | 0.055 | — |
| Cash CapEx · Chinese company definition | — | — | — | — | — |
| FCF · total calculation | 27.345 | 18.730 | 8.615 | −10.115 | — |
| Net cash · liquid assets less borrowings | 72.111 | 77.327 | 72.111 | −5.216 | — |
| Liquid assets · including short-term investments | 125.369 | 130.615 | 125.369 | −5.246 | — |
| Borrowings · interest-bearing debt | 53.258 | 53.288 | 53.258 | −0.030 | — |
| Cash and cash equivalents | 20.604 | 19.165 | 20.604 | 1.439 | — |
| Total liabilities · accounting liabilities | 180.379 | 183.440 | 180.379 | −3.061 | — |
CY denotes the calendar quarter with the greatest overlap with the fiscal period. If the first period has no start date, 89 days before its end is used only for calendar mapping. Financial values are not recalculated into calendar quarters. Incomplete years show totals of included quarters; cash, liabilities, borrowings and net cash use the last period-end balance. QoQ and YoY show absolute changes; margin changes are percentage points. Dashes indicate missing evidence or incomparable periods or definitions. Total liabilities never substitute for borrowings.
Definitions and evidence coverage
A dash means unavailable or undisclosed, not zero. Company-defined FCF may differ from total operating cash flow less common-basis CapEx. Total liabilities are accounting liabilities, not interest-bearing debt.
Management commentary paraphrases the earnings release. A full earnings-call and Q&A review has not been completed.
Financial tables use existing InveDeck normalized data and may reflect subsequent comparative filings. Segment tables and outlook use the original release basis.