Shares of Microsoft Corp. (MSFT) are down 2% after the U.S. technology giant reported quarterly earnings and lowered its forward guidance.
Microsoft reported earnings per share of $2.32 U.S., which was above the $2.29 U.S. forecast by analysts, according to Refinitiv data.
However, the Seattle-based company’s revenue in the quarter totaled $52.75 billion U.S., which was slightly below the $52.94 billion U.S. that was expected on Wall Street.
Microsoft lowered its forward guidance, saying it now expects revenue for the next quarter of $50.5 billion U.S. to $51.5 billion U.S.
The new guidance is below the $52 billion U.S. in revenue that analysts have penciled in for Microsoft’s next earnings report.
Microsoft also reported that growth at its Azure cloud computing division slowed to 31% in the most recent quarter, a sharp decrease from previous quarters.
The company also took a $1.2 billion U.S. charge during the quarter related to its elimination of 10,000 employees, and revisions to its hardware products and lease agreements.
In a conference call with analysts and journalists, Microsoft executives said that the company saw a steep decline in business at the end of 2022, with sales of its core Windows and Office products declining sharply.
Microsoft’s latest financial results kick-off earnings season for the big American technology firms. The tech-laden Nasdaq index is coming off its worst year since 2008 and its first four-quarter decline since the dot-com bubble burst back in 2000.
Microsoft’s stock has fallen 16% in the past 12 months to now trade at $242.04 U.S. per share.
