Microsoft Corp warned of more gloom to come following its lackluster earnings report in the second quarter of fiscal 2022.
Microsoft chief financial officer Amy Hood expects the slow business trend in December to continue into the current quarter.
This follows poor growth in subscriptions to Microsoft 365 productivity software, identity and security services and business-oriented Windows products.
Growth in the use of the company's cloud computing service, Azure, has also slowed, he added.
The tech giant reported fiscal second-quarter revenue rose 2% to $52.7 billion in the three months ended Dec. 31, compared with the average analyst estimate of $52.94 billion.
Net income fell 12% to $16.4 billion, but adjusted earnings of $2.32 per share beat Wall Street estimates of $2.29, according to Refinitiv.
Meanwhile, sales at Microsoft's personal computer segment, which includes Windows, devices and search results, fell 19% to $14.2 billion as the PC market continued to shrink.
The company expects revenue to fall to $11.9 billion to $12.3 billion in the current fiscal third quarter.
Microsoft shares closed 1% lower in the New York session (Tuesday), trading at $239.58 following the report.
