Microsoft Motors Along

Updated from 5:40 p.m. EST

Microsoft(MSFT Quote) grew revenue by 9% during its fiscal second quarter to a record $11.84 billion, but still fell a bit shy of Wall Street's expectations and didn't deliver any of the earnings upside that some were hoping for.

The world's largest software company posted a profit of $3.65 billion, or 34 cents a share, including a 1-cent-a-share tax benefit, which equaled the 33-cents-a-share consensus of analysts polled by Thomson First Call. Analysts were looking for sales of just under $12 billion.

Operating income in the quarter dropped by 2% to $4.66 billion, reflecting heavy investments for the company's new line of products, Microsoft said after the closing bell Thursday. ...