Microsoft CEO Satya Nadella in 2016
Satya Nadella, Chief Executive Officer of Microsoft Corp., listens to audience questions at the Microsoft Annual Shareholders Meeting in Bellevue, Washington on November 30, 2016.
Jason Redmond | AFP | Getty Images
Microsoft shares fell 3% in extended trading on Tuesday after the software and hardware company reported fiscal fourth-quarter earnings.

Here’s how the company did:

Earnings: $2.17 per share, adjusted, vs. $1.92 per share as expected by analysts, according to Refinitiv.
Revenue: $46.15 billion, vs. $44.24 billion as expected by analysts, according to Refinitiv.
Revenue rose 21% year over year in the quarter, which ended June 30, according to a statement. In the previous quarter revenue had increased by 19%.

The Productivity and Business Processes unit, which contains Office productivity software along with LinkedIn and Dynamics, contributed $14.69 billion in revenue, up 25% and above the StreetAccount consensus of $13.93 billion.

Microsoft’s More Personal Computing segment, which features Windows, as well as devices, gaming and search advertising, generated $14.09 billion in revenue. That’s up 9% and more than the $13.74 billion StreetAccount consensus.

Technology industry research company Gartner estimated that PC shipments grew 4.6% in the quarter. Microsoft’s revenue from device makers for Windows licenses in the quarter rose 3%.

During the quarter, Microsoft announced its intent to acquire speech-recognition company Nuance Communications for $19 billion, including debt. It also introduced Windows 11, a new version of its desktop operating system, although sales of licenses to device makers will be deferred.

The company’s board voted to make CEO Satya Nadella its chair, and Microsoft’s top individual shareholder, Co-Founder Bill Gates, announced that he’s splitting up with his wife, Melinda French, who also once worked at Microsoft.

Executives will discuss the results with analysts and issue guidance on a conference call starting at 5:30 p.m. ET.

Notwithstanding the after-hours move, Microsoft shares are up about 29% since the start of 2021, while the S&P 500 index has risen almost 17% over the same period.