Microsoft shares were down 5% despite the group beating analyst expectations with profits of $18.8bn for the final three months of 2021.
The group reported revenues of $51.7bn, which is 20% higher than a year earlier.
Satya Nadella, chairman and chief executive officer, said: “Digital technology is the most malleable resource at the world’s disposal to overcome constraints and reimagine everyday work and life.”
“As tech as a percentage of global GDP continues to increase, we are innovating and investing across diverse and growing markets, with a common underlying technology stack and an operating model that reinforces a common strategy, culture and sense of purpose.”
Microsoft is the first big tech group to announce the latest reports. Still to come this year are Apple, Amazon, Alphabet and Meta.