In the second quarter, Microsoft’s computers and games are slipping, but its cloud is holding up

The economic and political situation has deprived Microsoft of better growth, a situation which will limit the number of recruitments.

Microsoft’s results suffered from the economic situation during the past quarter, but the good resistance of its cloud activity (remote computing) reassured investors. The computer giant on Tuesday released revenue of $52 billion for the fourth quarter of its staggered fiscal year, up 12% year on year. Its net profit stood at 16.7 billion, a very slight increase (+2%).

In its press release, the American group notes that the unfavorable exchange rates deprive it of 595 million dollars of income. Record inflation, supply chain problems, factory closures in China due to Covid and the war in Ukraine are all factors that have weighed on the company’s accounts.

Its personal computer activity thus displays 14.4 billion dollars on the counter, only 2% more than last year at the same period. As for video games, Xbox content and services generated revenue down 6% year-on-year.

Results from Microsoft “below Wall Street expectations»

Microsoft’s resultsare below Wall Street expectations, but underlying indicators for cloud and orders are strong“, reacted Dan Ives of Wedbush Securities, in a note. The title of the Redmont group (north-west) took 3.87% during electronic trading after the close of trading. According to Chief Financial Officer Amy Hood, quoted in the statement, Microsoft generated $25 billion in revenue from the cloud, up 28%.

Revenue from Azure, Microsoft’s remote computing platform, jumped 40% year-on-year, or 46% at constant currency, a performance comparable to the previous two quarters. “The DNA of Microsoft’s growth is the cloud“, assured Dan Ives. “And Azure’s growth looks set to continue for months to come despite economic headwinds“.

With 21% market share, it is the second cloud service provider in the world, behind Amazon’s AWS (33%) and ahead of Google Cloud (8%), according to figures from the consulting firm. Canalys studies for the first quarter of 2022. Microsoft, like many other technology companies, had indicated during the past quarter that the pace of recruitment would slow down, especially for the teams that take care of its Office IT suite or the Windows operation.


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