Microsoft released its FY 2023 Q2 earnings on Tuesday after market close, posting its slowest revenue growth since 2016.
The tech giant reported $52.7B in revenue, up 2% YoY. GAAP net income came in at $16.4B, or $2.20 a share, down 12% YoY. Microsoft’s Azure cloud business reported a 31% revenue growth, down from 35% reported in the previous quarter.
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- Microsoft’s Productivity and Business Processes unit, which includes Microsoft 365 and LinkedIn, earned $17B in revenue, up 7% YoY.
- CEO Satya Nadella noted that the company’s Teams communication platform, its Zoom rival, now has over 280 million monthly active users.
- The company’s Personal Computing unit, which includes Windows, Xbox, and Surface, earned $14.24B in revenue, down 19% YoY.
- Sales of Windows licenses to device makers fell 39% YoY, following a 15% decline in the previous quarter.
- Microsoft took a $1.2B charge in the quarter related to its plans to lay off 10,000 workers, revise its hardware lineup, and consolidate leases.
- This amount included $800M in employee severance costs.
- Microsoft shares rose more than 3% in extended trading on Tuesday.
