Microsoft (NASDAQ:MSFT) shares dipped by more than 6% in after-hours trading Tuesday even as the software giant flexed its cloud-business muscles by reporting fiscal first-quarter results that surpassed expectations.
After U.S. stock markets closed, Microsoft (MSFT) said that it earned $2.35 a share on $50.1B in revenue for the quarter ending September 30. Wall Street analysts had forecast Microsoft (MSFT) to earn $2.31 a share on sales of $49.7B. During the year-ago quarter, Microsoft (MSFT) earned $2.71 a share on $45.3B in revenue.
Revenue from Intelligent cloud computing, including Microsoft's (MSFT) Azure and other cloud services, was the biggest piece of the company's revenue puzzle, and totaled $20.3B, up 20% from last year's first quarter.
Productivity and business processes revenue, which includes Office commercial and consumer products and cloud services, rose by 9% from a year ago, to $16.5B, while revenue from what Microsoft (MSFT) calls more personal computing "decreased slightly" to $13.3B.
Speaking on a conference call, Microsoft (MSFT) Chief Executive Satya Nadella, and Chief Financial Officer Amy Hood spoke about the company's results and outlook. Hood said the company expects revenue to grow at a "double-digit" year-over-year rate in its current fiscal year, but also said some rough weather could be coming in the months ahead.
Microsoft's (MSFT) results came amid what is seen as a crucial period for tech company earnings as concerns about inflation and the health of the global economy continue to weigh on investors' sentiments.