For the period ending March 31, Microsoft reported revenue of US$13.65 billion, down 6 percent compared to the same quarter last year and below the $14.09 billion that analysts had predicted.
Earnings per share were $0.33, down 30 percent over last year and below the analyst forecast of $0.39 per share.
Microsoft's operating income for the quarter was down just 3 percent from the same period last year, at $4.44 billion.