Microsoft reported quarterly earnings missed analysts' expectations on Thursday, while revenues came basically in line.
The technology giant posted fiscal third-quarter earnings per share of 62 cents, compared to 61 cents a share in the year-earlier period. Revenue for the quarter came in at $22.08 billion, against the comparable year-ago figure of $21.73 billion.
Analysts expected Microsoft to report earnings of 64 cents a share on $22.09 billion in revenue, according to a consensus estimate from Thomson Reuters.
Shares of the tech giant traded more than 4 percent lower in after-hours following the release, and fell as much as 5 percent.
Microsoft's international business was hurt by a strong U.S. dollar, as well as declining PC sales. On April 11, research firm Gartner said worldwide PC shipments declined 9.6 percent year over year in the first quarter, marking the sixth-straight quarter of PC shipment falls.
However, its cloud business grew more than expected last quarter.
"Organizations using digital technology to transform and drive new growth increasingly choose Microsoft as a partner," Satya Nadella, chief executive officer at Microsoft, said in a release. "As these organizations turn to us, we're seeing momentum across Microsoft's cloud services and with Windows 10."
Microsoft said its Intelligent Cloud business grew 8 percent in constant currency last quarter to $6.1 billion. Analysts expected the firm to report $6.28 billion in revenue from that segment, according to StreetAccount. Within the segment, Azure revenue grew by 120 percent.