Microsoft earnings hit by personal computing slowdown
Microsoft posted a double-digit profit decline in the three-month period ending in September as the company confronted a slowdown in the personal computing industry and a broader economic downturn.
In the three months ending in September, Microsoft reported a double-digit decline in profits as the company faces a slowdown in the personal computer industry and a wider economic downturn.
The tech giant on Tuesday reported net income of $17.6 billion for the quarter, a decrease of 14% from the year prior. Microsoft (MSFT)’s revenue, meanwhile, grow a modest 11% to $50.1 billion. Both results were better than analysts had expected.
On Tuesday, the tech giant reported net income of $17.6 billion for the quarter, a decrease of 14% from the year prior. Meanwhile, Microsoft's revenue grew 11% to $50.1 billion. Both results were better than analysts’ expectations.
Microsoft’s Azure cloud services unit saw revenue increase by 35% from the prior year, but the growth was slower than some analysts had hoped for a division that has been one of the company’s biggest bright spots in recent years.
Microsoft’s Azure cloud services unit, which has been one of Microsoft’s biggest bright spots in recent years.
Other parts of Microsoft’s business decided. Microsoft said revenue from its Windows OEM operations fell 15% from the year prior, which comes as demand for personal computers has fallen sharply on the heels of a pandemic-fueled boom. Consulting firm Gartner reported earlier this month that worldwide PC shipments decided 19.5% in the third quarter of 2022, compared to the same period last year. This marks the steepest market decline since Gartner began tracking the PC market in the mid-1990s.
Microsoft's other businesses have declined. Microsoft said revenue from its Windows OEM business fell 15% from the previous year, as demand for PCs plummeted after the pandemic. Consulting firm Gartner reported earlier this month that global PC shipments fell by 19.5% in the third quarter of 2022 compared with the same period last year. This is the biggest decline since Gartner started tracking the PC market in the mid-1990s.
①shipment:
-Eng [ˈʃɪpmənt] US [ˈʃɪpmənt]
transport; shipping; shipment
②steep:
3-English [stiːp] US [stiːp]
steep
Microsoft also said revenue from Xbox content and services decided by 3%. The company reportedly recently laid off employees in its Xbox division, among other parts of the company, as it — like many other tech companies right now — looks to cut costs.
Microsoft also said revenue from Xbox content and services fell by 3%. The company reportedly recently fired employees in the Xbox division and other parts of the company because it wanted to cut costs like many other tech companies at present.
Shares of Microsoft fell 2% in after-hours trading Tuesday following the earnings report.
After the financial report was announced on Tuesday, Microsoft's stock price fell 2% in after-hours trading.
Microsoft’s stock has fallen more than 25% since the beginning of the year, amid a broader market downturn as rising inflation, geopolitical uncertainty from the war in Ukraine and more macroeconomic headwinds continue to wreak havoc on the tech industry.
Microsoft’s stock has fallen more than 25% since the beginning of the year, amid a broader market downturn as rising inflation, geopolitical uncertainty from the war in Ukraine and more macroeconomic headwinds continue to wreak havoc on the tech industry.
Microsoft’s stock has fallen more than 25% since the beginning of the year, amid a broader market downturn as rising inflation, geopolitical uncertainty from the war in Ukraine and more macroeconomic headwinds continue to wreak havoc on the tech industry.
Microsoft’s stock has fallen more than 25% since the beginning of the year, amid a broader market downturn as rising inflation, geopolitical uncertainty from the war in Ukraine and more macroeconomic headwinds continue to wreak havoc on the tech industry.
Microsoft’s stock has fallen more than 25% since the beginning of the year, amid a broader market downturn as rising inflation, geopolitical uncertainty from the war in Ukraine and more macroeconomic headwinds continue to wreak havoc on the tech industry.
Microsoft’s stock has fallen more than 25% since the beginning of the year, amid a broader market downturn as rising inflation, geopolitical uncertainty from the war in Ukraine and more macroeconomic headwinds continue to wreak havoc on the tech industry.
Microsoft’s stock has fallen more than 25% since the beginning of the year, amid a All of these have caused serious damage to the technology industry and led to a wider market downturn.
headwind:
eng [ˈhedwɪnd] US [ˈhedwɪnd]
eng.
eng.
wreak:
eng. riːk] US [riːk]
eng.
eng.
"In this environment, we're focused on Helping our customers do more with less, while investing in secular growth areas and managing our cost structure in a distributed way,” Satya Nadella, CEO of Microsoft, said in a statement Tuesday announcing the quarterly earnings.
Microsoft CEO Satya Nadella said in a statement on quarterly earnings.
Haris Anwar, senior analyst at Investing.com, called Microsoft’s earnings report a “mixed bag” in a commentary after the results were released on Tuesday.
Investing.com Senior analyst Haris Anwar said the earnings report was “mixed” after the results were released on Tuesday.
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