What you need to know
- Surface revenue is up 6% year-over-year.
- Microsoft pulled in nearly $2 billion in Surface revenue - a new record.
- Steep cuts in holiday pricing and new devices drove demand.
Microsoft's earnings report is out for the second quarter of its 2020 fiscal year, and the company raked in 36.9 billion beating most estimates.
The big news for More Personal Computing, especially the Surface division is good all around. Microsoft is reporting $1.98 billion in revenue for Surface, which is up 6 percent year-over-year ($1.86 billion).
That number also is up significantly from last quarter at just $1.13 billion where there was a lull before new Surface devices.
Microsoft does not break out the numbers for Surface individually, so it is unclear which device is selling the best. Microsoft launched Surface Pro 7, Surface Pro X, and Surface Laptop 3 (including a new 15-inch model) that resonated with audiences. The company was also more aggressive than usual in pricing with some substantial discounts over the holidays to woo buyers.
Update: On Microsoft's earning's CFO Amy Hood noted that these Surface numbers were lower than expected due to "execution challenges". For guidance, Microsoft expects next quarter to see "single digit growth" with Surface as they work through those execution challenges. It's unclear what those challenges are, but Microsoft did miss shipping Surface Earbuds during this quarter.
See more of Microsoft's full quarter results.
