You are currently viewing Microsoft Revenue Up 2 Percent, but Profit Drops 12 Percent

The company, which announced plans to lay off 10,000 workers last week, had warned that is was facing a significant slowdown in the growth of its sales.

Microsoft on Tuesday reported its slowest growth in six years and cautioned that a broader slump will continue as both consumers and businesses put the brakes on spending.

The technology giant said revenue increased 2 percent from a year earlier to $52.7 billion for the three months that ended in December. Profit fell 12 percent to $16.4 billion. 

Both were below Wall Street expectations, according to FactSet. Microsoft’s share price initially shot up more than 4 percent in after hours trading, thanks largely to its cloud-computing business, but it lost those gains after Amy Hood, Microsoft’s chief financial officer, said in a call with investors that new business slowed in December. The company also said that it expects growth to continue to slow in the current quarter,

Keep reading this article on The New York Times Business.

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