- Microsoft ( MSFT ) reported earnings results after the market closed on Jan. 24, 2023, showing higher-than-expected growth in cloud revenue.
- The software giant also beat analysts’ estimates for earnings per share (EPS), but narrowly missed revenue expectations.
- Microsoft shares rose 4% in after-hours trading after the earnings release.
Microsoft announced the second quarter of fiscal 2023 earnings per share (EPS) $2.32, which beat analysts’ estimates. Revenue rose 2% to $52.75 billion, missing expectations and growing the slowest of any quarter since 2016.
Revenue at its Intelligent Cloud unit rose 18% to $21.5 billion, driven by 31% growth for Azure and other cloud services. Sales on LinkedIn increased by 10%. Revenue fell 39% for both Windows OEM and devices.
10,000 job cuts
The news came just days after CEO Satya Nadella he announced 10,000 job cuts, telling employees the company needs to “align our cost structure with our revenue and where we see customer demand.” As with many tech firms recently, Microsoft has faced a slowdown in customer spending due to a boom in demand during the COVID-19 pandemic.
Microsoft shares rose 4% in after-hours trading. They ended the regular session with an 18% drop over the last year.