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　　Microsoft delivered its weakest quarterly report in five years.

　　On October 25, local time, Microsoft (MSFT.US) announced its financial report for the first quarter of fiscal 2023 as of September 30. During the reporting period, revenue was US$50.122 billion, an increase of 11% year-on-year, higher than market expectations of 49.66 billion. US$; net profit of US$17.556 billion, down 14% year-on-year; earnings per share of US$2.35, higher than market expectations of US$2.30 and US$2.71 in the same period last year.

　　However, the Wall Street Journal said it was Microsoft's weakest revenue growth since 2017 and its worst quarterly net profit drop in more than two years.

Source: Microsoft

　　In cloud computing, Microsoft's Intelligent Cloud division (which includes server products such as Azure public cloud, GitHub, and Windows server) posted revenue of $20.3 billion in the first quarter, up 20 percent year-on-year. Among them, revenue from Azure and other cloud services increased by 35% year-on-year, compared with a 40% year-on-year increase in the division in the previous quarter, the growth rate has slowed down. Azure is the second largest cloud service provider in the world, after Amazon Cloud Services (AWS).

　　Amy Hood, Microsoft's chief financial officer, said on a conference call that rising energy costs in the first quarter reduced Azure's gross margin and expected Azure revenue growth to continue to slow.

　　"Moving to the cloud is the best way to do more with less," Microsoft CEO Satya Nadella said on the earnings call.

　　In the personal computer business (including Windows operating systems, advertising, devices and games, etc.), revenue in the first quarter was $13.3 billion, up 3% year-on-year. Among them, Windows operating system revenue fell by 15%, and the company said that the personal computer market will continue to deteriorate in the future. This was the largest drop since 2015, according to CNBC.

　　This result was not entirely unexpected. Technology industry research firm Gartner has said that PC shipments fell 19.5% year-on-year in the past quarter; US chip giant AMD also disclosed lower-than-expected quarterly results earlier this month, saying the reason was "the PC market was lower than expected, and Major inventory adjustments in the PC supply chain".

　　According to a report from market research firm Canalys, global shipments of desktop and notebook computers fell by 18% in the past quarter compared with the same period last year, with notebook computers being more severely affected.

　　Xbox content and services revenue fell 3%. The reason is that as the outbreak subsides, people are gradually reducing their time at home. Microsoft previously spent $75 billion to acquire Activision Blizzard, which is expected to close by the end of June next year.

　　In addition, Productivity and Business Processes first-quarter revenue of $16.5 billion was up 9% year over year, compared with a 13% year over year increase in the previous quarter. Among them, Office commercial products and cloud services revenue increased by 7% year-on-year, Office 365 commercial revenue increased by 11% year-on-year, Office consumer products and cloud service revenue increased by 7% year-on-year, LinkedIn revenue increased by 17% year-on-year, Dynamics 365 revenue increased by 15%, Dynamics products And cloud services revenue rose 24%. The growth rate is lower than the previous quarter.

　　Like other tech giants, Microsoft is constantly cutting labor costs. On October 18, Microsoft was revealed to be planning layoffs, but did not disclose the specific number. In July, Microsoft said it planned to cut 1% of its more than 200,000 employees.

　　At the close of U.S. stocks on October 25, Microsoft rose 1.38% to $250.66 per share, down 6.7% after the market. The Wall Street Journal said Microsoft’s shares have fallen about 25% this year, slightly outperforming the tech-heavy Nasdaq Composite, which has fallen 28% for the year.