Microsoft has reported a 12% fall in profits to $5bn (£3.3bn) in the first three months of 2015.
The strengthening US dollar had a "significant impact" on results, the software firm said.
It also took a a charge of $190m during the quarter to reorganise its business which includes the costs of merging Nokia's handset division.
However, sales from cloud computing services doubled, beating expectations and sending shares higher.
Microsoft says that business is expected to generate $6.3bn in annual sales.