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Microsoft CEO Satya Nadella at last week’s Windows 10 consumer preview.

Microsoft shares have fallen 9 percent in trading this morning, to less than $43 a share, after the company’s earnings report Monday afternoon. Investors appear to be reacting to the lower commercial and consumer licensing revenue reported by the company for its flagship Windows and Office franchises.

Several analysts downgraded Microsoft’s shares following the earnings report, citing underlying trends in the company’s earnings report.

Rick Sherlund, the Nomura Research analyst who has covered the company since it went public, wrote in a note to clients, “After a lengthy 16-month period of multiple expansion for Microsoft’s stock, we see a tougher transition ahead, and move to the sidelines with a Neutral rating on the stock, down from Buy.” He reduced his price target to $50 from $56 along with the downgrade.

JPMorgan and Citi analysts also downgraded the stock to neutral.

Microsoft reported revenue of $26.5 billion for the December quarter, up 8 percent, beating Wall Street’s expectations on the top line. The company turned in earnings of 71 cents per share — matching the projections of analysts polled in advance, but down from 78 cents a year ago.

During the company’s conference call with analysts, Microsoft CEO Satya Nadella cited the company’s booming commercial cloud business and improving economics in its hardware business. However, he also acknowledged challenges in Windows and Office, in part related to economic issues in Japan and regulatory problems in China.

“We also saw some challenges this quarter,” he said. “As expected, the one-time benefit of Windows XP end-of-life PC refresh cycle has now tailed off. Additionally, we ran into unexpected issues in select geographies. Where there are execution issues, we will address them. Where there are macroeconomic challenges, we will weather them.”

Here are Microsoft’s divisional results, by fiscal quarter, with Q2 2015 representing the quarter reported yesterday, ended in December 2014.

msdivisional

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