Microsoft records slowest quarterly sales in six years

Share post:

Microsoft reported its slowest growth in six years and warned that a broader slump would continue as consumers and businesses cut back on spending, while the company deals with a cooling economy and a slowing PC market at the same time.

After initially rallying on better-than-expected earnings for the December quarter, the stock price reversed due to the company’s revenue forecast for the current quarter in its earnings call.

Its revenue increased by 2% year on year to $52.7 billion for the quarter ended in December. Profit was also down 12% to $16.4 billion. Both fell short of Wall Street’s expectations. Meanwhile, earnings were rated $2.32 per share, compared to analysts’ expectations of $2.29 per share, according to Refinitiv.

Server product and cloud revenue increased by 20%, with Azure and other cloud services increasing by 31%. While commercial Office sales increased by 7%, consumer Office sales decreased by 2%. Revenue from PC makers and Microsoft’s own Surface devices both fell 39%. While revenue from search and advertising increased by 10%, revenue from LinkedIn increased by 10%. Revenue from Xbox content and services fell 12%. Xbox hardware fell 13%.

According to a statement, total revenue increased by 2% year over year in the fiscal second quarter ending Dec. 31, the slowest rate since 2016. Net income fell to $16.43 billion in the third quarter, down from $18.77 billion the previous year. In the quarter, Microsoft took a $1.2 billion charge in connection with its decision to cut 10,000 jobs, revise its hardware lineup, and consolidate leases. Employee severance costs amount to $800 million of the charge.

The sources for this piece include an article in Axios.


Related articles

NYSE technical error sends stocks tumbling

A technical glitch at the New York Stock Exchange (NYSE) today caused several high-profile stocks to rapidly lose...

Google does the unthinkable – reportedly erasing a 125 billion dollar pension fund

It's reported that Google inadvertently erased the Google Cloud account of UniSuper, an Australian pension fund valued at...

Apple faces backlash over recent ads

Apple is currently facing significant public backlash due to a controversial advertisement featuring a hydraulic press crushing various...

 Google executives face employee concerns amid profitsurge

At a recent all-hands meeting, Google employees voiced significant concerns regarding morale, cost-cutting measures, and the impact of...

Become a member

New, Relevant Tech Stories. Our article selection is done by industry professionals. Our writers summarize them to give you the key takeaways