Microsoft Corporation

Q2 was another strong quarter demonstrating Microsoft's breadth. Revenue of $69.6 billion grew 12% year over year. Azure grew 31% with AI services contributing 13 percentage points of that growth. The momentum in our cloud business continues to accelerate. Copilot is transforming how people work across every product category. Microsoft 365 Copilot now has 70% of the Fortune 500 as customers. GitHub Copilot has surpassed 1.8 million paid subscribers with average developer productivity improvements of 55%. Our gaming segment generated revenue of $8.0 billion, including Activision Blizzard. Call of Duty had its best engagement quarter in six years.

Commercial remaining performance obligations grew 34% to $298 billion, providing excellent revenue visibility. Gross margin was 69.4%. Intelligent Cloud segment revenue was $25.5 billion, up 19%. For Q3 FY2025: we expect revenue of $68.7 to $69.7 billion. Intelligent Cloud segment guidance is $25.9 to $26.2 billion.

Satya, on Azure — you mentioned AI contributing 13 points. How do we think about the trajectory from here?

The constraint until recently was GPU capacity. We're now bringing on significant new capacity, and we expect Azure AI growth to accelerate in the second half of fiscal year. We have demand that exceeds our current supply — a good problem to have.

How should we think about Copilot monetization?

We see a clear path to Copilot becoming a meaningful revenue contributor. The commercial momentum — 70% Fortune 500 penetration in a short time — speaks to the product value. We're still in the early stages of seat expansion within those accounts.