Microsoft Corp. issued revised forecasts for earnings in the fiscal fourth quarter that were lower than previous projections.

The software giant said it now expects earnings per share of US$2.24 to US$2.32, down from earlier estimates for US$2.28 to US$2.35 a share.

Revenue is seen coming in at US$51.94 billion to US$52.74 billion, lower than previous projections for as much as US$53.20 billion.

Microsoft issued the new guidance in a securities filing Thursday morning, “to help investors understand the impact of unfavorable foreign exchange rate movement in the fourth quarter of fiscal 2022 since the forward-looking guidance provided on April 26.” The company sees a US$460 million impact on fourth-quarter revenue from currency fluctuations. 

The speed of US interest rate increases relative to other developed economies and the war in Ukraine have fed a surge in demand for the dollar, which has surged more than six per cent since the start of the year. Treasury Secretary Janet Yellen said in a recent press briefing that the administration is committed to a market-determined exchange rate.

Microsoft shares declined about three per cent in early trading in New York.

In its most recent earnings report, issued in April, Microsoft reported quarterly sales and earnings that topped analysts’ projections, fueled by robust growth in cloud-services demand.