REDMOND, Wash. (AP) — Microsoft on Tuesday reported fiscal fourth-quarter profit of $16.7 billion, or $2.23 per share, falling short of analyst expectations for $2.29 per share — a rare disappointment from the tech giant that has consistently beat Wall Street expectations in recent years.
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It posted revenue of $51.9 billion in the April-June period, up 12% from last year. Analysts had been looking for revenue of $52.94 billion, according to FactSet.
The company blamed a number of “evolving macroeconomic conditions and other unforeseen items” for affecting its financial performance, including pandemic-related production shutdowns in China, a deteriorating personal computer market, lowered spending on advertisements and the war in Ukraine, which led Microsoft to scale down its operations in Russia.
The company had already lowered its profit and sales estimates in early June based on what it described as “unfavorable” changes in the foreign exchange rate as the U.S. dollar surged.
A tough season for computer sales — blamed on supply chain disruptions and geopolitical instability — put pressure on Microsoft’s personal computing business, which relies on licensing revenue from PC manufacturers who install its Windows operating system on their products.
Sales from those licenses dropped 2% from the same time last year, Microsoft reported Tuesday. That, along with a 6% drop in sales of Microsoft’s Xbox gaming-related content, dragged down the company’s broader personal computing business segment, which grew just 2% to $14.4 billion for the quarter.
The market research firm Gartner recently said global PC shipments declined 12.6% in the second calendar quarter of 2022 from the same time last year, the sharpest decline in nine years. Another report by International Data Corp. estimates PC shipments declined 15.3% during that April-June period, the second consecutive quarter of lower shipments after two years of growth.
Growth of Microsoft’s cloud computing business made up for some of its shortfalls elsewhere. Microsoft’s cloud-based segment sold $20.9 billion for the quarter, up 20% from last year.
Microsoft’s work-related software segment, which includes its Office suite of products, grew 13% to $16.6 billion for the quarter. That included a 26% increase in revenue from its career-focused social network LinkedIn, despite lower spending on ads on the service.
Microsoft is currently aiming to close on a $68.7 billion purchase of video game company Activision Blizzard, in what could be the largest-ever tech industry acquisition. The deal, announced in January, awaits approval from antitrust authorities in the U.S. and the United Kingdom.
Ever heard of the term “blame shifting”? When you can’t take critic and trying to blame someone else. Microsoft, I’m not an economist, but they’re a reason so many people try to avoid your products. Think about it! Removing features and raising prices at the same time is not the perfect role model for a business.
“Microsoft Blames Economic Woes For Missing Profit Targets.”
The “Global Economy” shot back at Microsoft after the tech company blamed it’s poor financial performance on the sad state of the economy.
“How much money has been lost due to Microsoft Windows vulnerabilities? Trillions?” the global economy asked in a statement issued on Tuesday. “From malware to spyware to ransomware, you name it, these vulnerabilities are costing me, the global economy, trillions upon trillions of dollars.”
“Hence,” the statement went on to say, “before you blame me, the good ole’ economy, for your measly profits, take a look in the mirror, and see how many worms you’ve got on your software!”
when inflation is up, up, up, guess what? spending will be cut. can m$ windows provide you with food? or fix your car or toilet? or pay your utilities? All discretionary spending will be cut.
You’d think there would be a post from self-educated Archie demanding that Microsoft starts manufacturing affordable computers, not relying on microchips. What was wrong with vacuum tubes? They owe it to the country.
I’ll cry for you
a trillion dollars woke company
Complaining about thee we economy they created by doing everything in their power to defeat trump