Microsoft Corp projected its latest fiscal annual results to grow by 2 digits following a string of good 4th quarter (4Q) results ending June 30, driven by demand for cloud computing services.
It is understood that the projections are made in the wake of the shift to hybrid work models and investor preparation for recession and inflationary pressures that make consumers spend less.
Looking at Microsoft's report, 4Q revenue increased to $51.87 billion compared to $46.15 billion a year earlier.
It was a little off from the analysts' forecast, which on average put the value at $52.44, but excluding the strengthening factor of the greenback's value, Microsoft's results were quite satisfactory.
Meanwhile, the company's net income also increased to $16.74 billion or $2.23 per share compared to the previous year's record of $16.46 billion or $2.17 per share.
Overall Microsoft had its best quarter for the cloud business (clouding) with Azure services recording an increase in orders.
Azure services recorded 40% growth despite falling short of analyst forecasts of 43%, but excluding currency strengthening factors, it rose 46%.
Meanwhile, the Intelligent Cloud division managed to beat Wall Street's $19.1 billion forecast with revenue posting a 20% jump at $20.9 billion.
For the projected 1Q ending September 30, the Intelligent Cloud division is forecast to bring in revenue between $20.3 billion and $20.6 billion.
According to TECHnalysis Research analyst, Bob O'Donnell, Microsoft is seen to continue to run its business despite the shrinking economic trend.
He added that Microsoft's core strength in software and computing services has made it a popular choice and maintains its position as one of the leaders in the technology sector.
On the other hand, the rate of personal computer (PC) sales and low advertiser spending were factors in Microsoft's failure to meet analysts' targets.
