Subj : Microsoft hits record profits once again  but there's a rare miss
To   : All
From : TechnologyDaily
Date : Wed Jul 31 2024 10:45:05

Microsoft hits record profits once again  but there's a rare miss for Azure 
cloud results

Date:
Wed, 31 Jul 2024 09:37:54 +0000

Description:
Despite a healthy 29% revenue growth, Azure fell short of predictions, and 
investors are slightly worried.

FULL STORY
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Microsoft has surpassed Wall Street estimates by posting fourth-quarter 
financial results showing a total three-month revenue of $64.73 billion. 

However, despite stronger-than-expected overall revenue, the company's Azure 
cloud platform experienced revenue growth below what had been forecast, 
driving investor concern and reducing stock by around 7% in extended trading. 

For the company on the whole, both revenue and operating income saw a 15% 
growth, with net income accounting for a healthy $22.0 billion. Is 
Microsoft's growth slowing down? 

Microsofts growth is largely attributed to its cloud computing segment, 
Intelligent Cloud, which generated $28.52 billion in revenue, or 44% of the 
companys entire revenue, marking a solid 19% increase. 

Despite very strong growth, Azures 29% revenue growth fell short of the 
anticipated 31% figure  the first time the business has fallen short of 
predictions since 2022. 

Elsewhere in the business, Microsoft posted a 7% increase in Windows revenue, 
which could be good news for its flagship AI-enabled Windows 11 operating 
system, which has so far proven less popular than hoped. Windows 10 continues 
to account for around two-thirds of all Windows installs, with Windows 11 
only accounting for around 30% of the market. 

As a platform company, we are focused on meeting the mission-critical needs 
of our customers across our at-scale platforms today, while also ensuring we 
lead the AI era," Microsoft CEO Satya Nadella commented. 

For the twelve months ending June 30, 2024, Microsoft generated $245.1 
billion in revenue, an increase of 16% year over year. 

Looking ahead, the company forecasts fiscal first-quarter revenue between 
$63.8 and $64.8 billion, below the $65.24 billion expected by analysts, which 
could put a dent in share prices. Microsoft has slipped back into second 
place in terms of market cap, just behind Apple, with a valuation of $3.143 
trillion. More from TechRadar Pro These are the best cloud hosting providers 
around today VMware revenues appear to plummet, but Broadcom says everything 
is fine Store your data online with the best cloud storage and best cloud 
backup tools



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Link to news story:
https://www.techradar.com/pro/microsoft-hits-record-profits-once-again-but-the
res-a-rare-miss-for-azure-cloud-results


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