Microsoft's quarterly profit falls 14%, but beat analysts' forecasts

Microsoft Corp.'s net income fell 14% in the first quarter of fiscal 2023. The company's revenue, meanwhile, rose 11%. Interestingly, both figures beat analysts' expectations.

According to MarketWatch, the corporation's net income in the first quarter of fiscal year 2023, which ended September 30, declined 14% to $17.56 billion. For comparison, during the same period last year, earnings were $20.51 billion. Earnings per share decreased to $2.35 from $2.71 last year.

Meanwhile, Microsoft's quarterly revenue rose 11%, from $45.32 billion to $50.1 billion. Both figures, as noted above, beat the expectations of experts who had forecast net income of $2.31 per share on revenue of $49.66 billion.

Revenue from the Windows division during the reporting period fell by 15% (which was quite expected against a background of falling sales of personal computers and laptops), but there was a 4% increase in profits from the Xbox gaming division: revenue from the Xbox, according to Eurogamer, amounted to $ 3.6 billion - more than experts had predicted. At the same time, revenue from the sale of consoles during the reporting period grew by 13%, but revenue from content and services decreased by 3%.

The revenue of Intelligent Cloud division increased by 20% - to $20.3 billion. At the same time, the revenue of cloud services increased by 35%, less than experts predicted (36.5%). For comparison, in the previous fiscal quarter there was 40% growth, and for the same period in 2021 - 50%.

Earlier, Microsoft shares fell by 6.7% in trading and capitalization of the company since the beginning of this year has decreased by 25.5% to $1.84 trillion.