Big tech companies are making a significant recovery from last year's challenges, as Alphabet and Microsoft led the way in a robust start to the earnings season, reporting impressive sales results for the quarter ending in September.
Alphabet, the parent company of Google, revealed quarterly sales of $76.69 billion on Tuesday, marking an 11% increase from the same period in the previous year. The company also reported profits of $19.69 billion for the quarter.
Meanwhile, Microsoft showcased a 13% year-on-year sales growth, reaching $56.5 billion, surpassing expectations. Microsoft’s quarterly profits soared to $22.3 billion, a notable 27% increase from the same period last year.
These strong results follow a challenging 2022 when tech giants like Microsoft, Alphabet, and others implemented extensive layoffs and cost-cutting measures due to reduced spending by advertisers and clients, driven by concerns about the macroeconomic climate.
Despite exceeding Wall Street’s sales forecasts, Alphabet’s shares experienced a dip of approximately 6% in after-hours trading following the reports.
In contrast, Microsoft’s shares surged by around 3% in after-hours trading, reflecting investor confidence in the company’s impressive performance.