Microsoft soothes market fears with forecast for double-digit revenue growth

📆 2022/07/27 10:27:00
📰 ChannelNewsAsia

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:Microsoft Corp on Tuesday forecast revenue this fiscal year would grow by double digits, driven by demand for cloud computing services and sending shares up 6 per cent.The strong outlook shows Microsoft continues to benefit from the pandemic-led shift to hybrid work models and comes at a time when investors

:Microsoft Corp on Tuesday forecast revenue this fiscal year would grow by double digits, driven by demand for cloud computing services and sending shares up 6 per cent.

Still Microsoft had its best quarter for its cloud business with record bookings for its cloud service called Azure, said Brett Iversen, Microsoft's general manager of investor relations. Microsoft faces pressure from a stronger greenback as it gets about half of its revenue from outside the United States. That led the company to lower its fourth-quarter profit and revenue forecasts in June. Shares of the Redmond, Washington-based company have fallen about 25 per cent this year.

Foreign exchange negatively impacted revenue by nearly $600 million. A slowdown in the PC market hit Windows OEM revenue by over $300 million. And advertising spend slowdown hit LinkedIn and Search and news ad revenue by over $100 million.

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Microsoft earnings hurt by slowing PC sales, stronger dollar:Microsoft Corp missed estimates for quarterly revenue on Tuesday, hurt by a stronger dollar, slowing sales of PCs and lower advertisement spending.Shares of the Redmond, Washington-based company fell about 1 per cent in trading after the bell. The stock has lost about 25 per cent this year.Microsoft a
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