Microsoft records in the third trimester of pregnancy the slowest growth in the past five years | Economie

It seems that the slowdown in the US economy has reached some of its technological poles. Microsoft The company reported Tuesday that it posted its lowest growth in five years in the third quarter of the year. Although the IT giant saw revenue rise 11% to $50.1 billion between July and September, profits fell 14% to $17.6 billion, Compared to the same period of the previous year. The last time revenue growth was this slow was at the beginning of 2017; Since then, Microsoft’s revenue has grown between 12% and 22% on a quarterly basis.

The slowdown in the economy and the change in consumption habits — Microsoft, like the rest of the tech companies, rose like foam during the pandemic — shows data harvested in the first quarter of fiscal 2023 technically (which doesn’t correspond to a calendar year). In a statement, the technology highlighted the continued growth of its cloud and cloud plus productivity software suite businesses, in the face of weakness demonstrated by global demand for new computers.

“In a world facing more and more headwinds, digital technology is the biggest boost,” Microsoft CEO Satya Nadella said in the statement. The company invests in the fastest growing areas and oversees the cost structure “with discipline”.

The results confirmed expectations that Microsoft expected for investors in a less favorable currency environment due to the strength of the dollar, which reduced global revenues by about 2,300 million dollars. After eliminating currency fluctuations, Microsoft’s business has grown by 16% in the past three months. Despite the negative results, the company emphasized that it still sees healthy and sustainable demand in its business model.

Nasdaq Technology Index Wall Streetwhich closed today with a rise of 2.25%, will react this Wednesday, most likely downward, to the presentation of the bitter results of Microsoft and the other tech giant, Alphabet, the parent company of Google, whose benefits are left at 27% compared to the third quarter of 2021.