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Microsoft revenue growth slows as cloud business helps offset Windows decline – GeekWire

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Microsoft CEO Satya Nadella speaks at the Microsoft Build developer conference in Seattle in May 2019. (GeekWire Photo / Kevin Lisota)

A declining PC market and macroeconomic headwinds are slowing Microsoft’s revenue growth numbers, but the Redmond tech giant still beat expectations for its first fiscal quarter earnings report.

The company’s cloud computing arm continued to boost overall business, with Microsoft Cloud revenue reaching $25.7 billion in the quarter, up 24% year-over-year and representing more than half of total revenue.

Revenue from the Windows OEM sector was down 15%. The company cited “continued deterioration in the PC market.”

Microsoft CEO Satya Nadella will provide more details about impact from the macro-environment later this afternoon on a call with analysts; we’ll update our story with his comments.

Shares of Microsoft were down slightly in after-hours trading. The stock is down more than 25% this calendar year.

Here’s a quick rundown of the Q1 2023 numbers:

  • Revenue: $50.1 billion, up 11% from the year-ago period, vs. $49.7 billion expectation and vs. 22% growth a year ago.
  • Profits: $17.6 billion, down 14% from a year ago.
  • Earnings per share: $2.35/share, down 13%, vs. $2.31/share expectation.
  • Azure revenue up 35%, vs. 50% growth a year ago
  • Linkedin revenue: $3.67 billion, up 17%, vs. 42% growth a year ago

Divisional results:

  • Productivity and Business Processes (including Office): Revenue of $16.5 billion, up 9% (15% in constant currency) vs. 22% growth a year ago.
  • More Personal Computing (including Windows and Xbox): Revenue of $13.3 billion, down slightly (up 3% in constant currency), vs. 12% growth a year ago.
  • Intelligent Cloud (including Azure and server products): Revenue of $20.3 billion, up 20% (26% in constant currency), vs. 31% growth a year ago.

Story updating…



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