Microsoft had a “healthy” quarter , because despite the fact that one of its most profitable business verticals did not have the income that shareholders expected, the company had a better profit flow.
The company’s total revenue grew 11% year-over-year in the quarter, accounting for $501 billion in revenue. Additionally, Microsoft earned a $3.3 billion tax benefit.
Revenue from Azure , its cloud vertical, grew 35% in the quarter, down from 40% growth in the previous quarter. Given this, the company’s shares fell as much as 2% in extended operations.
The Productivity segment, which contains Microsoft 365, LinkedIn and Dynamics subscriptions, posted $164.7 billion in revenue, up 9%.
“As technology continues to rise as a percentage of global GDP, we are innovating and investing in diverse and growing markets, with a common underlying technology stack and operating model that reinforces a common strategy, culture and sense of purpose” Satya Nadella, CEO of Microsoft, said.
Revenue from the Personal Computing segment totaled $133.3 billion, slightly less than Wall Street expected, while revenue from sales of Windows licenses to device makers fell 15% year over year.
Gartner said earlier this month that PC shipments in the quarter fell 19.5%, with chipmaker AMD earlier this month posting lower-than-expected preliminary quarterly results linked to a “weaker PC market of than expected and significant inventory correction actions throughout the PC supply chain.”
During the quarter, Microsoft began rolling out the first annual update to its Windows 11 operating system since it released the original version last year, with the company announcing plans to slow its hiring pace and saying it was cutting less than 1% of employees. employees.
