Microsoft said Wednesday it swung to profit in the past quarter on gains in cloud computing and business services, but shares took a hit on disappointing revenue growth.
The US tech giant said profit was USD 8.4 billion in the fiscal second quarter to December 31, compared with a loss in the same period a year ago on funds set aside for one-time charges, Revenues in the period rose 12 per cent to USD 32.5 billion, Microsoft said in results a shade below most market forecasts, prompting a drop of some 3.5 per cent in after-hours trade.
Chief executive Satya Nadella said Microsoft continues to see gains from its cloud services after having shifted away from many of its consumer offerings.
"Our strong commercial cloud results reflect our deep and growing partnerships with leading companies in every industry including retail, financial services and healthcare," Nadella said.
"We are delivering differentiated value across the cloud and edge as we work to earn customer trust every day."
LinkedIn, the professional social network acquired by Microsoft in 2016, saw a 29 per cent jump in revenues and "record levels of engagement."
Disclaimer: No Business Standard Journalist was involved in creation of this content