Microsoft gains after acquiring LinkedIn

Microsoft, one of the world’s largest technology firm, reported a 3.6% rise in profits to $5.2 billion in Q2, while revenue also increased by 1% to $24 billion. The company acquired LinkedIn, corporate social network, last year to venture into services other than its core Windows and Office offerings. Microsoft reported that it is shifting its dependence away from software to a broader set of services, and the LinkedIn acquisition helped in gaining revenue momentum with addition of $228 million to its topline.

Satya Nadella, Microsoft’s CEO, said that “The results confirm the new direction for Microsoft in areas such as cloud computing and artificial intelligence. Our customers are seeing greater value and opportunity as we partner with them through their digital transformation. Accelerating advancements in AI across our platforms and services will provide further opportunity to drive growth in the Microsoft Cloud.”

The firm reported 10% q-o-q jump in revenues from its productivity and business products, including its Office suite of programs such as cloud-based Office 365. Revenues from “intelligent cloud”, which includes a range of services for the enterprise, rose 8% q-o-q, while the personal computing segment, which includes the Windows operating system, saw a 5% drop in revenue. Its search division (Bing) also saw a marginal increase in revenues during the quarter.