Microsoft Corp's flagship cloud computing business Azure reported sales growth of under 50% for the first time ever on Wednesday, sending the tech giant's shares down 3%, even as it beat quarterly revenue estimates.
Microsoft said revenue in its Intelligent Cloud segment rose 17% to $13.4 billion, with 47% growth in Azure. Analysts on average had expected revenue of $13.09 billion, according to IBES data from Refinitiv.
Revenue from its personal computing division, the largest by sales, rose 14% to $12.9 billion, beating analysts' estimates of$11.46 billion. The unit includes Windows software, Xbox gaming consoles, online search advertising and Surface personal computers.
Net income fell to $11.20 billion, or $1.46 per share, from$13.19 billion, or $1.71 per share, a year earlier.
Revenue rose 13% to $38.03 billion in the fourth quarter ended June 30, beating estimates of $36.5 billion, according to IBES data from Refinitiv.© (c) Copyright Thomson Reuters 2020.