Microsoft's fourth-quarter profit rose nearly 40 per cent on a tax gain and strong demand for personal computers using its software.
But a weaker-than-expected revenue outlook fanned fears growth is slowing, and shares fell 2 per cent.
The world's biggest software maker said net profit rose to $3.70 billion, or 34 cents per share, in the fiscal fourth quarter ended June 30th, up 38 per cent from $2.69 billion, or 25 cents per share, a year earlier.
Excluding a tax benefit and legal and stock-based compensation charges, profit was 33 cents per share, 2 cents higher than Wall Street predicted. Revenue rose to $10.16 billion from $9.29 billion on strong demand for PCs, the main driver of sales for Microsoft's Windows, Office and Server software products.
Yearly revenue grew 8 per cent to $39.79 billion, Microsoft's slowest yearly growth since going public in 1986.
The company expects to earn between 29 cents and 31 cents per share for the current quarter, on revenue of $9.7 billion to $9.8 billion.
Analysts had been expecting earnings of 30 cents per share and revenue of $9.95 billion.