Microsoft reported earnings Wednesday after the bell.
The company 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.
The stock has risen more than 34% so far this year.
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.
And Microsoft's Xbox content and services revenue was up 65%, so what does this mean for video games?
Jim Cramer weighs in on this thoughts about Microsoft and where he sees continued strength.
Watch the video above for more.