Microsoft said on Monday ots fiscal second-quarter profit fell, as slow personal computer sales dampened demand for Windows software and the company had a one-time tax expense relating to an audit in the United States. The software company reported profit of $5.86 billion compared with $6.56 billion in the year-ago quarter. Revenue rose 8 percent to $26.5 billion, largely due to the acquisition of Nokia's phone handset business.

"Microsoft is continuing to transform, executing against our strategic priorities and extending our cloud leadership," said Satya Nadella, chief executive officer of Microsoft. "We are taking bold steps forward across our business, and specifically with Windows 10, to deliver new experiences, new categories, and new opportunities to our customers."

Revenue from cloud computing products more than doubled. The division is now on track to bring in $5.5 billion in sales this year. Surface revenue spiked 24 percent to over $1 billion. Xbox also sold 6.6 million consoles in the holiday quarter.

Microsoft's Windows licensing revenue dropped 13 percent during the period, partly due to weak PC sales in China and Japan.

Later this year, Microsoft will launch Windows 10, the next version of its flagship operating system. Designed to be equally familiar and easy to use on PCS and mobile gadgets, Nadella is hoping Windows 10 will capture both consumers and the developers who create apps for phones and tablets. Also up: Tech wizardry in the form of HoloLens computerized glasses - built on Windows 10 - that let wearers see and interact with three-dimensional holograms.