Microsoft Reports Record Revenue: Up 5% To $20.9B, Earnings At $0.78 Per Share

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Microsoft just reported its second quarter 2012 earnings with record revenues of $20.9 billion, an 5% increase from the same period of the prior year. The previous record, as far as I can Bing Google, was 19.95 billion in quarter 2 of 2011 (another holiday season).

Microsoft’s operating income, net income, and diluted earnings per share for the quarter were $7.99 billion, $6.62 billion, and $0.78 per share, compared with $8.17 billion, $6.63 billion and $0.77 last year.  Perennial loser the Online Services division (which includes Bing) lost another $458 million and Entertainment (which includes xBox) and Windows operating profits were also down.

“In addition to the continued strength of our commercial business, this holiday season was the strongest in Microsoft history, thanks to good sales execution and compelling products like Xbox 360 and Kinect,” said COO Kevin Turner in a release, “We are seeing a lot of excitement for new devices, from Windows 7 Ultrabooks to new Windows Phones, as well as growing anticipation for Windows 8.”

The company beat Wall Street’s revenue estimates as analysts were expecting earnings of $0.76 per share, with estimates ranging between $0.68 and $0.80. And it hit expected revenue square (about $20.9 billion), with estimates between $21.4 billion and $20.2 billion.

Microsoft’s earnings call will be at 2:30PM today, and you can follow it live here.

MICROSOFT CORPORATION              
               

SEGMENT REVENUE AND OPERATING INCOME (LOSS)

(In millions) (Unaudited)

               
 

Three Months Ended December 31,

 

Six Months Ended December 31,

   
 

2011

 

2010

 

2011

 

2010

Revenue              
Windows & Windows Live Division

 $    4,736

 

 $  5,056

 

 $    9,604

 

 $  9,843

Server and Tools

       4,772

 

     4,288

 

       9,022

 

     8,149

Online Services Division

          784

 

       713

 

       1,425

 

     1,260

Microsoft Business Division

       6,279

 

     6,110

 

     11,886

 

   11,312

Entertainment and Devices Division

       4,237

 

     3,698

 

       6,198

 

     5,493

Unallocated and other

            77

 

         88

 

          122

 

         91

  Consolidated

 $  20,885

 

 $19,953

 

 $  38,257

 

 $36,148

               
Operating income (loss)              
Windows & Windows Live Division

 $    2,850

 

 $  3,214

 

 $    6,101

 

 $  6,502

Server and Tools

       1,996

 

     1,711

 

       3,593

 

     3,248

Online Services Division

        (458)

 

      (559)

 

        (971)

 

   (1,132)

Microsoft Business Division

       4,152

 

     4,087

 

       7,839

 

     7,570

Entertainment and Devices Division

          528

 

       666

 

          877

 

     1,050

Corporate-level activity

     (1,074)

 

      (954)

 

     (2,242)

 

   (1,957)

  Consolidated

 $    7,994

 

 $  8,165

 

 $  15,197

 

 $15,281