Technology giant Microsoft (MSFT) has posted a double-digit drop in its third-quarter profit due to a sharp slowdown in the personal computing industry.
The Seattle-based company reported Q3 net income of $17.6 billion U.S., a decline of 14% from the same period of 2021. Microsoft’s revenue grew 11% to $50.1 billion U.S. in the July through September quarter.
Microsoft’s Azure cloud services unit saw revenue increase by 35% from a year ago, but the growth was slower than Wall Street forecasts.
Other areas of Microsoft’s business declined as well, with revenue from its personal computing unit down 15% from a year earlier following a boom during the pandemic.
Consulting firm Gartner has reported that worldwide personal computer shipments declined 19.5% in the third quarter from a year ago, the biggest decline since the mid-1990s.
Microsoft also said revenue from its Xbox video game unit declined by 3% in Q3.
The company has laid off employees in its Xbox division, among other parts of its business, in recent months as it trims costs.
Microsoft’s stock has fallen 33% this year and currently trades at $226.75 U.S. a share.
