Microsoft Corp. on Tuesday predicted revenue would increase by double digits this fiscal year, driven by demand for cloud computing services and sending shares up 5%.
The positive outlook, which comes as investors prepare for an economic slump with inflation raging and consumers cutting back on spending, suggests Microsoft is still benefiting from the transition to hybrid work arrangements driven by the epidemic.
According to TECHnalysis Research analyst Bob O’Donnell, Microsoft’s estimate demonstrates that businesses are still shifting more of their operations and employment online despite the troubling economic trends.
Despite the optimistic outlook for the fiscal year beginning July 1, Microsoft’s fourth-quarter results came in slightly below expectations due to a stronger dollar, slower PC sales, and reduced advertising spending.
