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The US tech giant said profits rose 3.6 percent in the second fiscal quarter to $5.2 billion, while revenues edged up one percent to $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 $228 million in revenue but erased $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.