The Redmond, Washington-based tech giant reported earnings of $1.46 per share and a 13% increase in revenue to $38 billion. Analysts were expecting the company to report earnings of $1.37 per share on revenue of $36.5 billion.
"We are the only company with an integrated, modern technology stack -- powered by cloud and AI and underpinned by security and compliance -- to help every organization transform and reimagine how they meet customer needs," said CEO Satya Nadella.
Earlier in the day, workplace messaging platform Slack (WORK) - Get Report filed an antitrust complaint against the company in the European Union, claiming that Microsoft unfairly bundled it rival Teams product with its cloud-based productivity suite.
Microsoft hit new all-time highs earlier this month as the stock pushed past a market capitalization of over $1.6 trillion.
The stock has risen more than 34% so far this year. The stock rose more than 1.3% in regular trading Wednesday.
The company's burgeoning cloud segment saw a 17% jump in revenue to $13.4 billion while its personal computing segment saw revenue jump 14% to $12.9 billion.
"Our commercial cloud surpassed $50 billion in annual revenue for the first time this year. And this quarter our Commercial bookings were better than expected, growing 12% year-over-year,” said Amy Hood, executive vice president and chief financial officer. "As we drive growth across the company, we remain committed to investing in long-term strategic opportunities.”
Operating expenses in the quarter also rose 13% to $12.3 billion, including a $450 million charge for the closure of Microsoft Store physical locations.
Microsoft said that it will provide forward looking guidance during its conference call discussing its quarterly results later Wednesday.
Microsoft shares fell 2.75% to $205.80 after hours following its release.
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