Microsoft exceeded economists’ expectations, posting first quarter revenue of $ 50.12 billion (£ 43.66 billion).
The figure compares to $ 45.32 billion a year earlier and analysts’ forecasts of $ 49.61 billion, according to Refinitiv IBES data.
Products like Outlook and Teams have made the business essential for businesses that continue to use flexible business models, despite the wider impact on business spending.
Net income fell to $ 17.56 billion, or $ 2.35 per share, during the quarter ended September 30, from $ 20.51 billion, or $ 2.71.
per share, one year earlier.
The news was gloomier for Alphabet, which owns Google, however, as it missed quarterly revenue estimates.
Alphabet has been hit by a drop in revenue from advertisers who are cutting costs.
The company said total revenue was $ 69.09 billion in the quarter through September 30, compared to $ 65.12 billion annually.
Before.
According to Refinitiv data, analysts expect an average turnover of $ 70.58 billion.
Net income fell to $ 13.91 billion, or $ 1.06 per share, from $ 18.94 billion, or $ 1.40 per share, a year earlier.
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Sophie Lund-Yates, principal analyst at Hargreaves Lansdown, said: “The slowdown in advertising revenue was not a surprise, but the speed of the slowdown was unwelcome and the market is still very sensitive to the changing tide.
“A weaker economic outlook will always put a damper on a company’s ability to pay for marketing. Many tech companies rely on advertising revenue, and the changing economic temperature saw Snap’s stock go into an avalanche early in the year. month.
“The reason why Alphabet is not following suit to the same extent is because it is absolutely indispensable. Demand can fluctuate and ebb, but it will never go out completely, and this is reflected in a rather remarkable stock price performance in the last month.
“Google is not a trend that could vanish, it is a fundamental daily activity for sections of the world population.
“Fundamentally the only real long-term risk to Alphabet’s investment case is the intensification of the anti-trust landscape.
“There will be further political and legal scrutiny. It is a case of when not of if.
“The huge pockets mean that Alphabet can handle these blips on a financial front, but it becomes a bigger question if today’s more ethically minded investors were to reach the end of their patience.”
