Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Microsoft beats expectations with first-quarter revenue

Microsoft beats expectations with first-quarter revenue

Outlook and Teams helped Microsoft weather the economic storm but cost-cutting by advertisers hit revenue at Google's parent company.

Microsoft has beaten economists' expectations, reporting first-quarter revenue of $50.12bn (£43.66bn).

The figure compares with $45.32bn a year earlier and analysts' forecasts of $49.61bn, according to Refinitiv IBES data.

Products such as Outlook and Teams have made the company essential to businesses continuing to use flexible work models, despite the broader hit to corporate spending.

Net income fell to $17.56bn, or $2.35 per share, during the quarter ending on 30 September, from $20.51bn, or $2.71
per share, a year earlier.

The news was more gloomy for Alphabet, which owns Google, however, as it missed estimates for quarterly revenue.

Alphabet was hit by a fall in income from advertisers who are cutting costs.

The company said total revenue was $69.09bn in the quarter to 30 September, compared with $65.12bn a year
earlier.

Analysts on average expected revenue of $70.58bn, according to Refinitiv data.

Net income fell to $13.91bn, or $1.06 per share, from $18.94bn, or $1.40 per share, a year earlier.

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said: "The slowdown in advertising revenue was not a surprise, but the speed of the slowdown was unwelcome, and the market is still highly sensitive to the changing tide.

"A weaker economic outlook will always put the brakes on a company's ability to pay for marketing. Plenty of tech companies rely on advertising revenue and the changing economic temperature saw Snap's shares enter a landslide earlier in the month.

"The reason Alphabet isn't following suit to the same degree is because it's utterly indispensable. Demand may ebb and flow, but it will never turn off completely, and that's reflected in a pretty remarkable share price performance over the last month.

"Google isn't a trend that might dissipate, it's a fundamental daily activity for swathes of the globe's population.

"Fundamentally the only true long-term risk to Alphabet's investment case is the heightened anti-trust landscape.

"Further political and legal scrutiny will happen. It's a case of when not if.

"Enormously deep pockets mean Alphabet can handle these blips on a financial front, but it becomes a bigger question if today's more ethically minded investors were to reach the end of their patience."

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
×