Microsoft profits miss expectations

Microsoft shares fell 1% in extended trading on Tuesday after the software maker reported fiscal fourth-quarter results that failed to reach Wall Street consensus.

Microsoft’s revenue and income fell short, as did the company’s revenue from Azure and other cloud services. Changing exchange rates and challenges in advertising and the PC markets brought down revenue in the quarter.

Microsoft turned in the slowest revenue growth since 2020, at 12% year over year in the quarter, which ended on June 30. The company’s earnings per share came below consensus for the first time since 2016, with net income rising 2% to $16.74 billion.

The biggest challenge in the quarter stemmed from worsening foreign-exchange rates. Microsoft said that reduced revenue by $595 million and earnings by 4 cents per share.

Earnings: $2.23 per share, adjusted, vs. $2.29 per share as expected by analysts.

Revenue: $51.87 billion, vs. $52.44 billion as expected by analysts.