The Redmont Group (NW) title gained 3.26% in electronic trading ahead of the stock market opening on Wednesday. (Photo: 123RF)
San Francisco. Microsoft’s results were hurt by the economic situation last quarter, but good resistance to its cloud computing (remote computing) activity has reassured investors.
On Tuesday, the computer giant reported $52 billion in revenue for the fourth quarter of its fiscal year, which was distributed on a rolling basis, up 12% year-over-year.
Its net income was $16.7 billion, a very small increase (+2%).
The Redmont Group (NW) title gained 3.26% in electronic trading ahead of the stock market opening on Wednesday.
In a press release, the US group notes that the unfavorable exchange rate is depriving it of $595 million in revenue.
Record inflation, supply chain issues, the closure of factories in China due to COVID, and the war in Ukraine have all weighed on the company’s accounts.
Thus, its activity in the field of personal computers is 14.4 billion US dollars, which is only 2% more than last year over the same period.
For video games, revenue from Xbox content and services was down 6% year-over-year.
Microsoft’s results are “below Wall Street’s expectations, but cloud and ordering fundamentals are solid,” Dan Ives of Wedbush Securities responded in a note.
Microsoft generated $25 billion in cloud computing revenue, up 28%, according to Chief Financial Officer Amy Hood, quoted in the statement.
Revenue from Azure, Microsoft’s remote computing platform, jumped 40% year-on-year, or 46% in constant currency, comparable to the previous two quarters.
“The DNA of Microsoft growth is the cloud,” said Dan Ives. “And Azure’s growth looks set to continue in the coming months, despite the economic hardship.”
With a market share of 21%, it is the second largest cloud service provider in the world, behind Amazon AWS (33%) and ahead of Google Cloud (8%), according to the consulting firm. 2022.
Microsoft, like many other technology companies, indicated last quarter that the pace of hiring would slow down, especially for teams working with Office or the Windows operating system.