Microsoft's revenue forecast under threat due to strong dollar and downturn in the PC market

On Tuesday, Microsoft will release a report with the lowest quarterly revenue growth in the last 5 years. Some analysts' expectations are associated with doubts about whether the corporation will be able to fulfill its forecast against the background of declining PC market growth and the strengthening of the US currency.

Worries about a global economic recession have been exacerbated by soaring inflation, which has forced citizens and businesses to reduce consumption by purchasing fewer computers and laptops, which has affected sales of Microsoft's core products, such as Windows and Office.

The US currency showed an increase of more than 17%, aggravating the situation and having an impact on the earnings of enterprises engaged in international operations. More than 50% of Microsoft's income comes from outside the United States.

According to Guggenheim analysts, the preservation of Microsoft's forecast for fiscal year 2023, namely double-digit revenue growth, is at risk. However, the company's ability to get out of the situation will attract a lot of attention, analysts reported last week.