Microsoft’s cloud business keeps profits flowing in tougher times

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Microsoft Corp posted results that showed some strength in the face of a weak economy, buttressed by a cloud business that hit Wall Street targets for the end of 2022, but it may miss expectations in the current quarter. | Reuters

It forecast third-quarter revenue in its so-called intelligent cloud business would be $21.7 billion to $22 billion, just below the analyst average forecast of $22.14 billion, according to Refinitiv. In the second quarter revenue from that segment beat expectations slightly at $21.5 billion.

“There’s a variety of ways that we can bring that technology either in specific offerings or to improve existing offerings,” said Brett Iversen, Microsoft’s head of investor relations, referring to OpenAI. He said revenue from OpenAI-related businesses would show up in revenue for Microsoft’s cloud service Azure in the future.

Azure cloud product revenue in the second quarter rose 31 percent, in line with estimates compiled by Visible Alpha. It has steadily grabbed market share from leader Amazon.com Inc’s Amazon Web Services .

 

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Reuters Yet they chose to layoff 10,000 workers.

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