The cloud division protects Microsoft from underperforming Xbox and Windows

minimum: Microsoft reported positive year-over-year revenue growth of $52.7 billion for the three-month period ended December 31, 2022, thanks in large part to strong performance of cloud computing services.

Shipping of $52.7 billion represented a modest 2 percent increase over the same period a year earlier. However, net income decreased 12 percent year-on-year to $17.37 billion, and diluted earnings per share came to $2.32 (down 11 percent compared to the fourth quarter of 2021).

Microsoft Productivity and Business Operations Division (Office, LinkedIn, Dynamics) I was born $17 billion in revenue, up seven percent year-over-year, while its intelligent cloud division rose 18 percent to $21.5 billion, both of which helped offset losses in other areas.

Windows OEM revenue decreased 39 percent, reflecting Microsoft’s hardware category performance. Xbox content and services revenue also took a hit, down 12 percent compared to the 2021 holiday season.

Microsoft recently they expanded Its partnership is with OpenAI, building on a partnership first forged in 2016 and reaffirmed in both 2019 and 2021. Microsoft described the new deal as a multi-year, multi-billion dollar investment that will accelerate AI breakthroughs. to me bloombergRedmond is committing an additional $10 billion.

Last week, the Washington-based tech giant announced it would cut its total workforce 10,000 jobs. With the cuts, Microsoft joins a host of other big tech companies that are shrinking their workforce after hiring heavily during the pandemic.

Related reading: These are the severance packages that tech giants like Google, Meta, and Amazon offer to fired employees

I look forwardMicrosoft expects revenue for the third quarter of fiscal year ’23 to be between $50.5 billion and $51.5 billion. The biggest takeaway here is that Microsoft expects revenue from its “most personal computing” division (Windows OEM, Xbox, hardware and research) to fall to between $11.9 billion to $12.3 billion, from $14.2 billion last quarter.

In related news, Xbox and Bethesda are currently streaming direct developer The show that promises an inside look at some of the biggest games coming to Xbox, PC and Game Pass.

Image credit: Valent LauAnd Delightful tadas

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