Microsoft Corp's flagship cloud computing business Azure reported sales growth of under 50 percent for the first time ever on Wednesday, sending the tech giant's shares down 3 percent, even as it beat quarterly revenue estimates.
Microsoft said revenue in its Intelligent Cloud segment rose 17 percent to $13.4 billion, with 47 percent growth in Azure. Analysts on average had expected revenue of $13.09 billion, according to IBES data from Refinitiv.
Revenue from its personal computing division, the largest by sales, rose 14 percent to $12.9 billion, beating analysts' estimates of $11.46 billion. The unit includes Windows software, Xbox gaming consoles, online search advertising and Surface personal computers.
Net income fell to $11.20 billion, or $1.46 per share, from $13.19 billion, or $1.71 per share, a year earlier.
Revenue rose 13 percent to $38.03 billion in the fourth quarter ended June 30, beating estimates of $36.5 billion, according to IBES data from Refinitiv.