:Microsoft Corp reported a better-than-expected quarterly profit on Tuesday as strong performance at its cloud services business helped offset a slump in the personal computer market, sending its shares 4 per cent higher in extended trading.
The upbeat results from Microsoft, whose business spans cloud services, software, gaming and computer hardware, will likely allay fears of a meltdown in the tech industry that has laid off thousands of employees this year in anticipation of an economic downturn. Microsoft said Azure cloud product revenue rose 31 per cent in the second quarter, in line with estimates compiled by Visible Alpha, while its broader Intelligent Cloud division posted revenue of $21.5 billion, versus a Wall Street consensus of $21.4 billion compiled by Refinitiv.Azure ended 2022 with 30 per cent share in the cloud computing market, up from 20 per cent in 2018, according to estimates from BofA Global Research. AWS dropped to 55 per cent from 71 per cent during the same period.
Sales at Microsoft's More Personal Computing segment, which includes Windows, devices and search revenue, declined 19 per cent to $14.2 billion as the PC market continued to shrink. Microsoft's revenue rose 2 per cent to $52.7 billion in the three months ended Dec. 31, compared with the average analyst estimate of $52.94 billion, according to Refinitiv IBES.Source: Reuters