Microsoft's Earnings Release for Q3 2016 is out.

The technology giant posted a net income of $3.8 billion GAAP on $20.5 billion GAAP of revenue, both down from the same period a year earlier. Earnings per share stood at $0.47 GAAP and $0.62 non-GAAP.

Microsoft's cloud strength highlighted the third quarter results with the total revenue of $22.1 billion non-GAAP coming from three operating groups.

Productivity And Business Processes Shared $6.5 Billion

This segment grew by 1 percent with cloud services and dynamics products posting the biggest growth rate at 9 percent. Dynamics CRM Online seat adds more than doubled year-over-year.

Office 365 posted an outstanding growth of 63 percent in constant currency, contributing to the 7 percent revenue growth for Office commercial products and cloud services.

Office 365 consumer subscribers also increased to 22.2 million, lifting the load for a revenue growth of 6 percent for Office consumer products and cloud services.

Intelligent Cloud Shared $6.1 Billion

Part of this segment's 3 percent growth rate came from Azure revenue's surprise growth of 120 percent, driven by the doubling of Azure compute and Azure SQL database usage year-over-year.

Enterprise Mobility Customers grew more than twice to 27,000 while server products and cloud services increased by 5 percent.

More Personal Computing Shared $9.5 Billion

This group's 1 percent growth rate was the result of a mix of increases and decreases in various sectors. Surface Pro 4 and Surface Book revenue increased by 61 percent and search advertising by 18 percent. Xbox Live monthly active users rose to 46 million at a growth rate of 26 percent.

Windows OEM and phone revenue were both on a downtrend at the rate of 2 percent and 46 percent, respectively.

Both revenue and net income were down from the previous year's levels. The company's Q3 2016 figures were slightly below the projections of Wall Street analysts polled by Thomson Reuters, which expected revenue of $22.09 and EPS of $0.64.

Microsoft put the blame on a strong dollar and higher-than-expected taxes, which the company said drove the decline in earnings by 4 percent. A deteriorating PC market is also another trend that has impacted sales not only for Microsoft but for other major technology companies as well.

Microsoft shares dropped 5 percent in after-hours trading on Thursday, April 21.

Photo: Marcin Wichary | Flickr

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