On Thursday, Microsoft surpassed analysts’ expectations as it reported earnings of 67 cents per share in the 2016 fiscal year’s first quarter.
The Redmond company’s overall revenue in the quarter was $21.66 billion. Consensus estimates made by Thomson Reuters and reported by CNBC show that analysts had expected Microsoft to report per-share earnings of 59 cents and total revenue of $21.06 billion. The market unsurprisingly reacted positively to the news, with extended-hours trade seeing Microsoft’s shares rise by over 7%.
In a statement, CEO Satya Nadella enthused: “We are making strong progress across each of our three ambitions by delivering innovation people love”, adding: “Customer excitement for new devices Windows 10, Office 365 and Azure is increasing as we bring together the best Microsoft experiences to empower people to achieve more.”
Microsoft’s unexpectedly good performance was largely driven by an 8% growth in its Intelligent Cloud segment, which accounts for Windows Server, Azure and other server-based products and services, and collected revenue of $5.9 billion. Under Nadella, the company has increased its focus on the cloud and slowly moved away from its phone business, the revenue of which fell by 54% in the quarter.
