Microsoft cuts first-quarter smart cloud revenue forecast By Reuters

(Reuters) – Microsoft cut its first-quarter smart cloud forecast on Wednesday, the tech giant said in a presentation to investors.

The company reported slowing growth in its cloud business in July, even after the tech giant spent billions of dollars on artificial intelligence to modernize its products and services.

The company said capital spending related to cloud and AI will take up almost all of its expenses. Microsoft (NASDAQ: ) said cloud growth will accelerate in the second half of fiscal 2025.

The company now expects smart cloud revenue to be in the range of $23.80 billion to $24.10 billion, compared to its previous expectation of $28.6 billion to $28.9 billion.