Microsoft -1.6% as revenues miss despite Office gains

|About: Microsoft Corporation (MSFT)|By:, SA News Editor

Microsoft (NASDAQ:MSFT) has dipped 1.6% after hours after its fiscal Q3 report, in which net income swelled to $4.8B but revenues missed expectations.

Overall gains in revenue of more than 6% were driven by a 22% increase in Productivity and Business Processes, with a boost from Office consumer products (up 15%) and Dynamics products (up 10%).

The LinkedIn acquisition contributed revenue of $975M.

Intelligent Cloud rose thanks to a 15% increase in server products and cloud services, while its PC group shrank (Windows OEM up 5%; Windows commercial products/cloud services up 6; Surface down 26%; Search ads ex-TAC up 8%; Gaming up 4%).

Revenue breakout: Product, $13.39B (down 6.5%); Service and other, $8.7B (up 40%).

Revenue by segment: Productivity and Business Processes, $7.96B (up 22%); Intelligent Cloud, $6.76B (up 10.9%); More Personal Computing, $8.84B (down 7.4%).

The company will offer guidance on its conference call to come at 5:30 p.m. ET.

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