Microsoft CEO Satya Nadella speaks at a Microsoft press conference in New York.

Don Emmer | AFP | Getty Images

Microsoft shares fell 2% in extended trading after the software maker reported fourth-quarter fiscal results that fell short of Wall Street consensus.

Here’s how the company did it:

  • Earnings: $2.23 per share, adjusted, versus $2.29 per share as expected by analysts, according to Refinitiv.
  • Revenue: $51.87 billion, versus $52.44 billion as forecast by analysts, according to Refinitiv.

Microsoft’s revenue grew 12% year-over-year in the quarter that ended June 30, compared with 18% growth in the prior quarter. according to a press release. Net profit rose 2% to $16.74 billion.

Microsoft’s Intelligent Cloud segment, which includes Azure public cloud for application hosting, SQL Server, Windows Server and enterprise services, generated $20.91 billion in revenue. That was up 20% and below the $21.10 billion consensus among analysts polled by StreetAccount.

The company said revenue from Azure and other cloud services increased 40% from 46% in the prior quarter. Analysts polled by CNBC had expected 43.1%, while StreetAccount’s consensus estimate was 43.4%. Microsoft does not disclose Azure revenue in dollars.

Microsoft’s Productivity and Business Processes segment, including Office productivity software, Dynamics and LinkedIn, recorded revenue of $16.60 billion. That’s up almost 13% and slightly less than the StreetAccount consensus of $16.66 billion.

The More Personal Computing segment, comprising Windows operating system, Xbox video game consoles, Bing search engine and Surface devices, generated $14.36 billion in revenue for the quarter. Revenue was up 2% year-over-year and barely below StreetAccount’s consensus of $14.65 billion. Microsoft said search and news advertising, excluding traffic acquisition costs, increased 18% due to higher search volume and revenue per search.

During the quarter, Microsoft lowered its quarterly earnings and revenue guidance due to changing currency exchange rates. CEO Satya Nadella said employees will get pay rises, and the company has introduced services to help customers deal with security incidents.

Microsoft shares have sold 25% so far this year, compared to a 17% decline for the U.S. S&P 500 stock index.

Executives will discuss the results with analysts and issue guidance during a webcast beginning at 5:30 p.m. ET.

This story is developing. Please check for updates.

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