The company said its operating expenses rose about 2% in the quarter, partly because of a charge to pay a fine from Ireland's Data Protection Commission after the authority looked at whether the company's LinkedIn unit violated the European Union's General Data Protection Regulation.ĭuring the quarter, Microsoft built on its broad alliance with OpenAI to capitalize on fresh interest in artificial intelligence, following the November launch of the startup's ChatGPT chatbot. Activision shares have climbed past $92.50, close to the $95 that Microsoft agreed to pay, reflecting optimism that the deal is on track to close. Earlier this month, an appeals court denied the Federal Trade Commission's motion to stop the transaction. Investors are eager for resolution in Microsoft's arrangement to buy Activision Blizzard for almost $69 billion, which was agreed upon in January 2022. Facebook parent Meta reports results on Wednesday, followed by Amazon and Apple next week. Investors will be looking at the Big Tech companies for updates on cost-cutting measures implemented earlier in the year and the impact of artificial intelligence investments on profitability.Īlphabet on Tuesday surpassed estimates, lifting the stock in after-hours trading. Microsoft and Alphabet kicked off earnings season for the mega-cap tech companies. Technology industry researcher Gartner estimated that PC shipments, including Apple's MacBooks, fell about 17% during the quarter. Consumers and companies rushed to buy PCs after the onset of Covid, making comparisons difficult for the past year. Sales of Windows licenses to device makers decreased by 12%, better than management had expected, Hood said. The division declined 4% year over year, yet it still topped the $13.58 billion StreetAccount consensus. The More Personal Computing segment, which contains Windows, devices, gaming and search advertising, posted $13.91 billion in revenue. Microsoft's productivity and business processes segment that contains Office productivity software, LinkedIn and Dynamics delivered $18.29 billion in revenue, up 10% and more than the StreetAccount consensus of $18.06 billion. But on a conference call with analysts, Microsoft CEO Satya Nadella said "Microsoft Cloud surpassed $110 billion in annual revenue, up 27% in constant currency, with Azure all up accounting for more than 50% of total for the first time." Microsoft doesn't report quarterly Azure revenue in dollars. Analysts polled by CNBC and by StreetAccount had expected 25% growth from Azure, which competes with Amazon Web Services and Google Cloud Platform. The unit comprises the Azure public cloud, SQL Server, Windows Server, Visual Studio, Nuance, GitHub and enterprise services.Īzure revenue grew 26% during the quarter, faster than the 27% growth in the previous quarter and 40% in the year-ago quarter. Microsoft's Intelligent Cloud segment contributed $23.99 billion in revenue, up 15% and above the $23.79 billion consensus of analysts surveyed by StreetAccount. Net income totaled $20.08 billion, up from $16.74 billion, or $2.23 per share, in the year-ago quarter. Growth has come in under 10% for three consecutive quarters for the first time since 2017. Revenue rose 8% year over year in the fiscal fourth quarter, which ended on June 30, according to a statement. The operating segment featuring the Windows operating system came up short, with Hood seeing $12.5 billion to $12.9 billion in revenue, below the $13.22 billion that analysts polled by StreetAccount had been looking for. The middle of that range, at $54.30 billion, implies 8% growth, and falls short of the $54.94 billion consensus among analysts polled by Refinitiv. On a conference call with analysts, Amy Hood, Microsoft's finance chief, called for $53.8 billion to $54.8 billion in fiscal first-quarter revenue. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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