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Microsoft misses cautionary revenue projections for FY22 Q4

3 min. read

Published onJuly 26, 2022

published onJuly 26, 2022

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Microsoft ended itslast quarterly earningsreport with a cautiously optimistic projection for FY22 Q4, warning that “adverse economic or market conditions that may harm our business,” could result in lower revenue for the quarter, and it seems things have caught up with the company.

Microsoft fell just shy of itsprojections for FY22 Q4, hauling in $51.9B in total revenue and $16.7B in net income on $20.5B in operating income. The diluted earnings per share for investors comes in at $2.23 which represents a 3% increase year over year.

This is the first time since 2016 Microsoft failed to meet or exceed its own earnings projections.

Ironically, much of Microsoft’s business was up for the quarter and even its revenue and net profit saw modest increases but the company projected just a bit higher and is now explaining its misses with the following reasonings:

Here are Microsoft’s business highlights for the quarter

Productivity and Business Processes

Productivity and Business Processes

Intelligent Cloud

Intelligent Cloud

More Personal Computing

Despite the doom-and-gloomish headlines, Microsoft managed to return $12.4B back to shareholders for the quarter through dividends and repurchases of stocks, which represents an increase on its buyback programs year over year.

Once again, Microsoft warns of increased cloud computing competition, potential government litigation and regulatory activity could pose disruption in next quarter for the company.

On the positive side, Microsoft’s search efforts continue to quietly improve, as the advertising business chalks up another 18% of growth year over year (missing the projected 20%), and that’s heading into the big Netflix partnership which see that revenue total increase over time.

Kareem Anderson

Networking & Security Specialist

Kareem is a journalist from the bay area, now living in Florida. His passion for technology and content creation drives are unmatched, driving him to create well-researched articles and incredible YouTube videos.

He is always on the lookout for everything new about Microsoft, focusing on making easy-to-understand content and breaking down complex topics related to networking, Azure, cloud computing, and security.

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Kareem Anderson

Networking & Security Specialist

He is a journalist from the bay area, now living in Florida. He breaks down complex topics related to networking, Azure, cloud computing, and security