Microsoft's quarterly adjusted profit was lower than expected as a continued slump in personal computer sales hurt the company's core Windows business. The company's net income fell to $3.76 billion in the third quarter ended March 31, from $4.99 billion a year earlier.

Revenue fell to $20.53 billion from $21.73 billion.

"Organizations using digital technology to transform and drive new growth increasingly choose Microsoft as a partner," said Satya Nadella, chief executive officer at Microsoft. "As these organizations turn to us, we’re seeing momentum across Microsoft’s cloud services and with Windows 10."

Revenue in Microsoft's "intelligent cloud" business, which includes the Azure cloud infrastructure and services business as well as products such as server software, rose 3.3 percent to $6.1 billion in the quarter.

Windows OEM revenue declined 2 percent in constant currency.