Microsoft’s revenue increased 12% in the second quarter of 2022, but was lower than that reported in the same period last year, where it indicated a growth of 18%. Net income rose 2% to $16.74 billion.
This caused shares of Microsoft to fall 1%, after the software maker presented its results.
The biggest challenge in the quarter came from worsening foreign exchange rates. Microsoft said it cut revenue by $595 million and profit by 4 cents a share.
In June, Microsoft lowered its quarterly earnings and revenue guidance guidance, due to rate fluctuations.
Microsoft’s intelligent cloud segment, which includes the Azure public cloud for application hosting, SQL Server, Windows Server and enterprise services, brought in $209 billion in revenue but fell short of the $211 billion expected in Wall St.
The company said revenue from Azure and other cloud services grew 40%, compared with 46% the previous quarter.
As for its Productivity segment, which includes Office, Dynamics and LinkedIn software, the company posted $16.6 billion in revenue. That was almost 13% higher than the same period but last year.
Microsoft also reported spending $126 million as a result of stopping selling products and services in Russia following the Vladimir Putin-led country’s invasion of Ukraine.
Regardless, Microsoft CEO Satya Nadella said employees will receive pay raises and that the company has introduced services to help customers deal with security incidents.