Rising cloud revenue helps soften Microsoft’s growth slowdown

Microsoft reported its slowest growth in five years for the first quarter of its fiscal 2023, due largely to a strong US dollar and an ongoing decline in personal computer sales, causing net income to fall by 14% to $17.56 billion from this time last year.

However, the company was still able to post an overall increase in revenue, up 11% to $50.1 billion for the three months that ended September 30, driven by the ongoing strength of its cloud computing services, which exceeded $25 billion in quarterly revenue, up 24%.

As a result of the announcement, Microsoft saw its share price fall by 5.65% in morning trading on the Nasdaq exchange Wednesday.

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