Microsoft’s (MSFT) fiscal fourth-quarter earnings revealed a sequential decline in Azure cloud revenue growth, overshadowing quarterly profits and revenues that topped Wall Street’s estimates.
Shares of Microsoft fell as much as 4% in after hours trading Tuesday night as the tech giant reported Azure and other cloud services revenue growth of 26% year-over-year for the fourth quarter, down 1 percentage point from the quarter prior. Azure growth has declined sequentially every quarter since at least Q3 2022 and remains in investor focus as companies trim capital expenses amid rising interest rates.
During a call with investors, Microsoft projected Azure growth between 25%-26% for the current quarter. When asked directly if the sequential drop in Azure revenue growth had “bottomed” Microsoft management didn’t provide a clear guide.
“(It is) still early innings of the cloud migration itself, so there’s a lot there still,” Microsoft CEO Satya Nadella said during the company’s earnings…
2023-07-25 18:21:33
Article from finance.yahoo.com
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