Microsoft earnings are out – here are the numbers

Microsoft shares fell 3% in extended trading on Tuesday after the software maker issued fiscal third-quarter earnings that exceeded analysts' expectations.

Here's how the company did:

Microsoft's revenue increased by 18% year over year in the quarter, which ended on March 31, compared with 20% in the previous quarter, according to a statement.

The company's Intelligent Cloud segment, which contains Microsoft's Azure public cloud for application hosting, along with SQL Server, Windows Server and enterprise services, generated $19.05 billion in revenue. That's up 26% and above the $18.90 billion consensus among analysts polled by StreetAccount.

Revenue from Azure and other cloud services jumped 46% in the quarter, compared with 46% in the prior quarter. The expectation was 45.3%, according to a CNBC survey of 13 analysts, while analysts polled by StreetAccount had been looking for 43.6% growth.

Microsoft's Productivity and Business Processes segment, containing Office productivity software, LinkedIn and Dynamics, posted $15.79 billion in revenue in the quarter, about 17% and slightly more than the StreetAccount consensus estimate of $15.75 billion. Microsoft raised the prices of certain Office 365 productivity software subscriptions during the quarter.

In the quarter Microsoft announced a plan to acquire video-game publisher Activision Blizzard for $68.7 billion, the largest transaction in Microsoft's 47-year history. Microsoft also closed its Nuance Communications acquisition and laid out a strategy for expanding in health care, an industry Nuance focuses on.

Microsoft shares are underperforming the S&P 500 so far this year. They've fallen about 17%, while the wider U.S. index has declined less than 10%.

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

This is breaking news. Please check back for updates.

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