Microsoft said it earned 95 cents per share on the quarter, topping forecasts of 85 cents per share, according to FactSet. Revenue of $26.8 billion beat expectations of $25.8 billion.
Shares initially fell about 2.4% in after-hours trading after the results were released, but recovered for a 0.3% gain.
Microsoft's Azure cloud computing service grew 93%, which is a pullback from the 98% rate of expansion in the second fiscal quarter.
Office 365 commercial revenue grew 42%, while revenue from Microsoft's LinkedIn social network increased 37%.
The company paid out $6.3 billion through dividends and share buybacks in the quarter.
Microsoft is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio.