Microsoft Earnings Beat Expectations Despite Disappointing Revenue Growth
Microsoft's (NASDAQ:MSFT) Q4 review has sparked debate among investors. Analysts pointed out that despite a significant drop in revenue, Microsoft still managed to deliver a decent quarter with earnings beating expectations by $0.07 per share.
The company reported revenue of $41.7 billion for the fiscal year 2022, which is down from $43.2 billion in the previous fiscal year. However, this decline was largely due to the sale of its SQL Server business last year. On an adjusted basis, excluding this one-time event, revenue actually increased by 12%.
The strong showing on the earnings front was attributed to a solid performance from the company's cloud business, particularly Azure and Office 365. These segments continue to drive growth for Microsoft as more businesses shift their operations online.