San Francisco: Microsoft reported a 14 percent decline in its net profit during its first quarter of 2023 (July-September) while revenue grew 11 percent amid a global decline in PC sales.
Microsoft earned $50.1 billion in revenue and $17.6 billion in net income in its first quarter of 2023.
“In a world facing increasing headwinds, digital technology is the ultimate tailwind,” said Satya Nadella, Microsoft chairman and CEO.
“In this environment, we are focused on helping our customers do more with less, while investing in secular growth areas and managing our cost structure with discipline,” Nadella said in a statement late Tuesday.
Microsoft Cloud revenue was $25.7 billion, up 24 percent year over year.
“We continue to see healthy demand across our business businesses including another quarter of solid bookings as we deliver compelling value for customers,” said Amy Hood, executive vice president and CFO of Microsoft.
The loss in net profit is largely due to a decline in the traditional PC market, as global shipments totaled 74.3 million units during the July-September period, a year-over-year contraction of 15 percent, according to the IDC.
Microsoft said LinkedIn revenue increased 17 percent while Intelligent Cloud revenue was $20.3 billion and up 20 percent.
Revenue in More Personal Computing was $13.3 billion and was down slightly.
Xbox content and services revenue was down 3 percent while device revenue was up 2 percent.
Nadella said that “almost half of Xbox Series S buyers are new to our ecosystem.”