Microsoft reported its slowest growth in five years in the first quarter of fiscal 2023, largely due to a strong U.S. dollar and continued declines in PC sales, which led to a 14% drop in net income to $17.56 billion in compared to this time last year.

However, the company was still able to post an 11% rise in total revenue to $50.1 billion in the three months ended Sept. 30, thanks to the continued strength of its cloud computing services, which topped $25 billion in quarterly revenue. 24%.

The announcement sent Microsoft shares down 5.65% in early morning trading on the Nasdaq on Wednesday.

Speaking to analysts after the financial results were released, Microsoft CFO Amy Hood said the company had a strong start to its fiscal year and that the results “were in line with our expectations, even though we saw many of the macro trends from the end of the fourth quarter continue to weaken during the first quarter,” it said. in a transcript from Seeking Alpha.

Hood also noted that foreign exchange rates impacted the company’s results, and that due to the strengthening of the US dollar, conversion from other currencies reduced the company’s total revenue by five percentage points.

Microsoft segment results

Microsoft has seen its productivity and business process segment that includes Office software productivity growth of 9% in the quarter to $16.5 billion.

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