Microsoft's quarterly profits surge 3.6 per cent, records gains in cloud computing business post LinkedIn acquisition

US tech giant Microsoft reported a surge in profits for its last quarter results, showing gains in cloud computing and other new areas of focus after acquiring LinkedIn social network.

The US tech giant on Thursday said profits rose 3.6 percent in the second fiscal quarter to USD 5.2 billion, while revenues edged up one percent to USD 24 billion.

The US tech giant, which is shifting away from dependence on software to a broader array of services, said the LinkedIn acquisition boosted its revenue in the last three months of the year but dragged on profit.

Microsoft, which bought LinkedIn as part of its efforts to make better connections with customers, said the deal added USD 228 million in revenue but erased USD 100 million in net profit.

Chief executive Satya Nadella said the results confirm the new direction for Microsoft in areas such as cloud computing and artificial intelligence.

"Our customers are seeing greater value and opportunity as we partner with them through their digital transformation," he said in a statement.

"Accelerating advancements in AI across our platforms and services will provide further opportunity to drive growth in the Microsoft Cloud."
Microsoft reported a 10 percent jump in revenue from its productivity and business products, which include its Office suite of programs such as cloud-based Office 365.

Revenue in Microsoft's "intelligent cloud", which includes a range of services for the enterprise, rose eight percent. The personal computing segment, which includes the Windows operating system, saw a five percent drop in revenue in the quarter.

Microsoft also saw increases from its Bing search advertising and a drop in revenue from its Xbox gaming operations.