The stock was flat but they were very profitable. Look here:
"Microsoft was very profitable during Steve Ballmer's tenure. As you can see from the chart, revenue doubled and net income doubled as well. Nearly $19 Billion in net income from $62 Billion in revenue is nothing to sneeze at, and that kind of growth is not easy for a company that large." [1]
[1] https://www.quora.com/Did-microsoft-make-a-profit-under-stev...