Microsoft revenue up 2%, but profit drops 12%

Microsoft on Tuesday reported its slowest growth in six years and cautioned that a broader slump will continue as both consumers and businesses put the brakes on spending.

The technology giant said revenue increased 2 per cent from a year earlier to $52.7 billion for the three months that ended in December. Profit fell 12 per cent to $16.4 billion.

Both were below Wall Street expectations, according to FactSet. Microsoft’s share price initially shot up more than 4 per cent in after-hours trading, thanks largely to its cloud-computing business, but it lost those gains after Amy Hood, Microsoft’s chief financial officer, said in a call with investors that new business slowed in December.