Quarterly revenue of Microsoft Corp (NASDAQ: MSFT) fell short the forecast of Wall Street, as sales of Surface notebooks and tablets fell amid increased competition in the PC market.
Microsoft's total adjusted revenue increased 6% to $ 23.56 billion for the quarter ended March 31, but did not reach the average forecast of analysts at $ 23.62 billion.
The revenue of the PC subdivision decreased 7.4% to $ 8.84 billion. Analysts on average expected revenue of $ 9.22 billion, according to FactSet StreetAccount. The division, called More Personal Computing, includes the Windows operating system, Xbox game consoles, search advertising and Surface devices.
Surface revenue fell 26% to $ 831 million from $ 1.3 billion a year earlier.
The revenue of the unit, which Microsoft calls the "Intelligent Cloud", which includes server products and the flagship cloud platform of Azure, grew by about 11% to $ 6.76 billion. Azure's revenue jumped 93%.
The Productivity and Business Processes division, which, in particular, is releasing the Office application suite, increased revenue by 22% to $ 7.96 billion. Sales of products and services for corporate customers increased by 7%, for private users by 15%, and the number Office 365 subscribers has grown to 26.2 million people.
Microsoft said that the social business network LinkedIn, acquired by the company for about $ 26 billion, accounted for $ 975 million of total profit, $ 25 million more than analysts had expected.
Microsoft's net income rose to $ 4.80 billion, or 61 cents per share, from $ 3.76 billion, or 47 cents a share, a year earlier.
The profit, excluding one-off items of the balance sheet, was 73 cents per share. Analysts polled by Reuters predicted an average of 70 cents per share.
Despite the results, Alphabet won’t stop the NASDAQ rally. The index updates its record high day after day, especially after Nasdaq Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOGL), which reported financial results, jumped more than 4% after the end of the Thursday session.