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NEW YORK (TheStreet) -- Microsoft (MSFT) - Get Microsoft Corporation Report on Thursday reported fiscal second-quarter results that beat expectations on both earnings and revenue, as strong Surface sales growth helped offset continued weakness in Windows OEM.

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The company reported earnings per share of 78 cents versus the average analyst estimate of 68 cents. Revenue came in at $24.52 billion, surpassing expectations of $23.68 billion.

During the quarter, both its software and services, and hardware segments posted increases.

Devices and Consumer revenue grew 13% to $11.91 billion, driven by strong Surface sale revenues. Surface sales more than doubled sequentially to $893 million in the second quarter from $400 million in the first quarter. Meanwhile, Bing search share grew to 18.2% and search advertising revenue grew 34%. The company sold 7.4 million Xbox console units into the retail channel, including 3.9 million Xbox One consoles and 3.5 million Xbox 360 consoles.

Windows OEM revenue declined 3%, as continued softness in the consumer PC market offset 12% growth in Windows OEM Pro sales.

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Commercial revenue grew 10% to $12.67 billion, as Office 365 commercial seats and Azure customers both grew triple-digits. Overall, commercial cloud services revenue more than doubled. The segment's System Center showed continued strength with double-digit revenue growth.

Shares of Microsoft were jumping more than 2.5% to $37.01.

The overall positive results were offsetting some concerns about poor Lumia smartphone sales as Microsoft buys Nokia's mobile devices unit to help support  its sharpened devices and services focus.

-- Written by Andrea Tse in New York.

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