Windows 8 fails to boost Microsoft

Microsoft’s earnings slipped 4% in the fourth quarter of last year, despite a lift from its latest version of Windows.

The results announced today are the first to include Windows 8, a dramatic overhaul of the operating system which powers most PCs. Windows 8 came out on October 26 with slightly more than two months left in Microsoft’s fiscal second quarter.

Although Windows 8 sales have not been as impressive as investors hoped, revenue in Microsoft’s Windows division climbed 24% from the previous year.

BGC Financial analyst Colin Gillis said Microsoft “has multiple revenue streams that are still very nice businesses”.

“I kind of like the Windows segment,” he said, adding that the 24% growth was “a little stronger than expected”.

Microsoft earned 6.4 billion US dollars (£4.04 billion), or 76 cents (48p) per share, during the final three months of the year. That was down from 6.6 billion US dollars (£4.17 billion), or 78 cents (49p) per share, a year earlier.

The company’s total revenue rose 3% from last year to 21.5 billion US dollars (£13.6 billion).