U.S. Microsoft Corp (NASDAQ:MSFT). increased revenue in its fiscal second quarter by 2% for the quarter ended Dec. 31 to $52.75 billion, up from $51.8 billion in the same period a year earlier.

Experts surveyed by FactSet had on average forecast the company’s revenue at $52.99 billion and net income at $2.29 per share.

Microsoft’s net income fell 13% to $16.43 billion from $18.77 billion a year earlier, with earnings per share slipping to $2.2 from $2.48.

One-time factors, including an $800 million charge related to job cuts, cost the company $0.12 per share. Earnings excluding non-recurring factors were $2.32 per share, the company said in a press release.

Total revenue for Microsoft’s cloud services grew 22% to $27.1 billion last quarter.

Revenue in the Intelligent Cloud division, which includes the Azure cloud service and server software business, rose 18% to $21.5 billion.

The Productivity and Business Processes division, which, in particular, develops the Office suite of applications, increased revenue by 7% to $17 billion. This division includes the social network LinkedIn, its revenue increased by 10%.

The revenue of the More Personal Computing business (including the Windows operating system, Xbox game consoles and Surface devices) fell 19% to $14.2 billion. Revenue from the sale of licenses for the use of Windows fell by 39%, revenue from content and services for Xbox decreased by 12%.

Microsoft Chief Financial Officer Amy Hood said on an investor conference call Wednesday that the company sees “customer caution” leading to a slowdown in revenue growth for its Azure service in the past quarter.

“We expect the business trends seen in late December to continue into the current quarter,” Hood said.

According to the forecast announced by Hood, Microsoft’s revenue for the current quarter will be in the range of $50.5 billion to $51.5 billion, significantly worse than analysts’ average forecast of $52.42 billion.

Last quarter, the company returned $9.7 billion to shareholders through share buybacks and dividends.

Microsoft shares fell 1% in extra trading Tuesday. The company’s capitalization has declined 16% over the past 12 months.