Microsoft posted Tuesday its revenue of 52.7 billion U.S. dollars in the second quarter of the fiscal year 2023 ending Dec. 31, 2022, up 2 percent from the same period of the previous year, recording a far slower growth rate than the company has seen over the past several years.
The company generated quarterly net profits of 16.4 billion dollars of Generally Accepted Accounting Principles (GAAP) and 17.4 billion dollars non-GAAP, decreasing 12 percent and 7 percent, respectively year on year. Diluted earnings per share were 2.20 dollars GAAP and 2.32 dollars non-GAAP, decreasing 11 percent and 6 percent respectively, compared to the same period a year ago.
Its operating income was 20.4 billion dollars GAAP and 21.6 billion dollars non-GAAP, which decreased 8 percent and 3 percent respectively from the same period last year, Microsoft said in its financial report.
The company’s revenue in Productivity and Business Processes was 17.0 billion dollars, an increase of 7 percent. Its revenue in Intelligent Cloud was 21.5 billion dollars and increased 18 percent year over year.
The Server products and cloud services revenue increased by 20 percent driven by Azure and other cloud services revenue growth of 31 percent. Revenue in More Personal Computing was 14.2 billion dollars and decreased by 19 percent, Microsoft said.
Microsoft returned 9.7 billion dollars to shareholders in the form of share repurchases and dividends in the second quarter of the fiscal year 2023, a decrease of 11 percent compared to the second quarter of the fiscal year 2022.
“The next major wave of computing is being born, as the Microsoft Cloud turns the world’s most advanced AI models into a new computing platform,” said Satya Nadella, chairman and chief executive officer of Microsoft.
“We are focused on operational excellence as we continue to invest to drive growth. Microsoft Cloud revenue was 27.1 billion dollars, up 22 percent year over year as our commercial offerings continue to drive value for our customers,” said Amy Hood, executive vice president and chief financial officer of Microsoft.