Demand for cloud computing services, which is driving Microsoft Corp.’s projection of double-digit revenue growth this fiscal year, sent shares up 5% on Tuesday. The positive prediction, which comes as investors prepare for an economic slowdown with inflation raging and consumers cutting back on spending, demonstrates how Microsoft continues to profit from the pandemic-led drive to mixed work arrangements.
Microsoft’s estimate, according to Bob O’Donnell, an analyst for TECHnalysis Research, reveals that businesses are still shifting more work and business online despite the bad economic trends. Regarding the forecast, he added, “I don’t think it’s specific to Microsoft.” Because of the variety of businesses it operates in and the crucial role that its software and computing services play for organizations, Microsoft is in an exceptional position.
Microsoft’s fourth-quarter results came in slightly below expectations despite the optimistic outlook for the fiscal year that begins on July 1. This was due to a stronger dollar, slower PC sales, and reduced advertising expenditure.Nevertheless, according to Brett Iversen, general manager of investor relations at Microsoft, the company had its best quarter for its cloud division with record bookings for its Azure cloud service.
