(Reuters) – Microsoft reported lower-than-expected quarterly revenue on Tuesday due to slower PC sales, a strong US dollar and lower ad spending.
However, these results are not considered catastrophic at a time when investors fear deep lows due to skyrocketing inflation and spending cuts by both consumers and businesses.
The group’s shares have been stable since the close of trading on Wall Street, where they have lost nearly 25% of their value since the start of the year.
From April to June, Azure’s dematerialized computing (“cloud”) platform saw growth of 40%. Analysts were expecting a median increase of 43.1%, according to Visible Alpha.
The cloud division as a whole reported $20.9 billion in quarterly revenue, up 20% from the $19.1 billion consensus, according to data from Refinitiv.
Microsoft has been affected by the strength of the US dollar, while about half of its turnover is outside the United States. This forced the company to revise downward its revenue and earnings forecasts for the quarter last month.
The exchange rates influenced the group’s turnover by almost $600 million. The slowdown in ad spending has affected LinkedIn and other companies by more than $100 million.
Microsoft’s total quarterly revenue was $51.87 billion, up from $46.15 billion a year earlier, with the consensus forecast of $52.44 billion, according to Refinitiv’s IBES data.
The group’s net income was $16.74 billion, or $2.23 per share, compared to $2.17 per share a year earlier.
(Report by Akash Sriram and Jane Lanhi Lee; French version by Jean Tertian)