Arab Press

بالشعب و للشعب
Monday, Jun 30, 2025

Microsoft blames turbulent economy as it misses profit targets

Microsoft blames turbulent economy as it misses profit targets

Tech giants Microsoft and Alphabet report their financial results in the US, with both seeing challenges in the current economy.

Microsoft missed its profit targets on Tuesday, blaming the turbulent economy.

The tech giant reported a fourth-quarter profit of $16.7bn (£13.8bn) - or $2.23 per share.

Revenue came in at $51.9bn (£43.1bn), which was up 12% from last year.

Analysts had been forecasting $2.29 per share and revenue of $52.94bn (£44bn), according to FactSet.

Microsoft blamed "evolving macroeconomic conditions and other unforeseen items" for its financial performance.

It cited supply challenges in China due to strict COVID-19 lockdowns, a deteriorating personal computer market, and the winding down of its operation in Russia as a reaction to that country's invasion of Ukraine.

Alphabet Inc, meanwhile, had a more positive showing, with revenue nearly in line with analysts' expectations.

The Google parent company said it saw second-quarter revenue rise to $69.69bn (£57.9bn) from $61.88bn (£51.3bn) a year earlier - nearly in line with the average expectation of $69.88bn (£58bn).

'Ad revenues still rising despite concerns of an overly-harsh tapering of demand'


Google's ad business was 81% of quarterly revenue, with sales coming in at $56.29bn (£46.8bn) - just below the average estimate of $56.67bn (£47.1bn).

Investors had expected ad revenue to falter as companies cut budgets to cope with rising costs.

Companies such as Alphabet are increasingly bringing in less cash from foreign revenue, due to the strong US dollar, and its shares have fallen more than 27% this year.

Overall profit was $16bn (£13.3bn) - or $1.21 per share, below the average estimate of $1.29.

Sophie Lund-Yates, equity analyst at Hargreaves Lansdown, said: "Alphabet's unshakeable presence in our daily lives means it falls into the essentials bucket for marketing teams, which is why ad revenues are still rising despite concerns of an overly-harsh tapering of demand.

"A positive reaction from the latest quarterly numbers has been incredibly hard-won, given the negative market sentiment surrounding broader tech.

"Alphabet's essential status for marketers makes it more able to stomach inflation, as its customer base is about as sticky as they come in the sector. However, it's not completely immune to residual issues from a tough economic backdrop."

Shares of Microsoft were down 0.5% in after-hours trading, while Alphabet was up 3% following the companies' results.

Microsoft ended the regular session down 2.7% and Alphabet ended 2.3% lower on the day.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
Qatar Airways Clears Backlog of Passengers Following Missile Threats
Iran's Parliament Votes to Suspend Cooperation with Nuclear Watchdog
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Oman Set to Introduce Personal Income Tax, First in Gulf
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
×