Microsoft Corporation (NASDAQ:MSFT) stock fell 5.31% (As on October 26, 11:37:44 AM UTC-4, Source: Google Finance) after the company  posted better than expected results for the first quarter of FY 23 as the ongoing shift to hybrid work powered demand for its cloud-based services and helped cushion a slump in the personal computers business. Net income fell to $17.56 billion during the quarter ended Sept. 30, from $20.51 billion, a year earlier.

MSFT in the first quarter of FY 23 has reported the adjusted earnings per share of $2.35, beating the analysts’ estimates for the adjusted earnings per share of $2.27. The company had reported the adjusted revenue growth of 11 percent to $50.12 billion in the first quarter of FY 23, beating the analysts’ estimates for revenue of $49.61 billion, according to Refinitiv IBES data.

Moreover, revenue in Productivity and Business Processes was $16.5 billion and increased 9% (up 15% in constant currency). Office Commercial products and cloud services revenue increased 7% (up 13% in constant currency) driven by Office 365 Commercial revenue growth of 11% (up 17% in constant currency). Office Consumer products and cloud services revenue increased 7% (up 11% in constant currency) and Microsoft 365 Consumer subscribers grew to 61.3 million. LinkedIn revenue increased 17% (up 21% in constant currency). Dynamics products and cloud services revenue increased 15% (up 22% in constant currency) driven by Dynamics 365 revenue growth of 24% (up 32% in constant currency). Revenue in Intelligent Cloud was $20.3 billion and increased 20% (up 26% in constant currency)· Server products and cloud services revenue increased 22% (up 28% in constant currency) driven by Azure and other cloud services revenue growth of 35% (up 42% in constant currency). Revenue in More Personal Computing was $13.3 billion and decreased slightly (up 3% in constant currency). Windows OEM revenue decreased 15%. Windows Commercial products and cloud services revenue increased 8% (up 15% in constant currency). Xbox content and services revenue decreased 3% (up 1% in constant currency). Search and news advertising revenue excluding traffic acquisition costs increased 16% (up 21% in constant currency). Devices revenue increased 2% (up 8% in constant currency).

Additionally, the company has returned $9.7 billion to shareholders in the form of share repurchases and dividends in the first quarter of fiscal year 2023, a decrease of 11% compared to the first quarter of fiscal year 2022.