Microsoft Corp (MSFT.O) narrowly missed Wall Street estimates for second-quarter revenue on Tuesday, squeezed by a slump in the personal computer market that hammered its Windows software business.
Revenue rose 2% to $52.7 billion in the three months ended Dec. 31, compared with the average analyst estimate of $52.94 billion, according to Refinitiv IBES.
Shares of the Redmond, Washington-based company rose 4% in extended trading. They lost nearly a third of their market value in a dismal 2022 for tech stocks.
Microsoft is wrestling with a steep drop in the computing division, which includes products like Windows operating systems and devices.
PC shipments tumbled nearly 29% between October and December, according to Gartner, the largest quarterly shipment decline since the consulting firm began tracking the market in the mid-1990s.