Microsoft reports slower Azure cloud growth; shares drop

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Microsoft reports slower Azure cloud growth; shares drop
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Microsoft’s main growth engine in recent years, its Azure cloud-computing service, expanded revenue by 29 per cent against expectations of 31 per cent.

Already a subscriber?Microsoft’s Azure cloud service posted a slowdown in quarterly growth, disappointing investors anxious to see a payoff from huge investments in artificial intelligence products. The shares fell.’s total revenue in the fourth quarter, which ended June 30, increased 15 per cent to $US64.7 billion , while adjusted profit was $US2.95 a share, the company said in a statement. Analysts on average estimated sales of $US64.5 billion and per-share earnings of $US2.94.

Microsoft shares fell about 6 per cent in extended trading. They had closed at $US422.92 in New York. from partner OpenAI, including digital assistants called co-pilots that can summarise documents and generate computer code, emails and other content. The company also is selling Azure cloud subscriptions featuring OpenAI products.

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