The company has delivered early: In its Q1 2018 earnings released today, the company has shared its cloud annualized run rate has hit $20.4 billion.
Azure, Microsoft's cloud unit, saw revenue growth of 90% in the latest period.
Microsoft's first quarterly earnings for 2018 (the company starts its fiscal year in July) continues the trend seen in the last one.More news: Colin Kaepernick reportedly agrees to $1M book deal
Microsoft reported revenue of $24.5 billion for the quarter, up almost 12 percent over the same period past year.
Profit in the period that ended September 30 exceeded analysts' estimates and sales rose 12 percent to $24.5 billion amid buoyant demand for Azure cloud services, used to store and run customers' applications in Microsoft's data centers.
Shares in the company, which reported its results after the closing bell on Thursday, inched up nearly 4% to about $81.75 in after-hours trading. Office 365 commercial revenue has increased by 42 percent while the consumer version of Office 365 now has 28 million subscribers. The company has been pushing heavily into cloud services, including Azure and its subscription-based Office 365 product.More news: Noted Malayalam Film-Maker IV Sasi Dead
For the More Personal Computing segment, Microsoft reported $9.4 billion in revenue... The business of licensing Windows out to PC manufacturers was up 4%.
Microsoft purchased LinkedIn, the professional social network, in December for $27 billion, in part, to boost the Dynamics business. As for the Xbox division, revenue increased by only 1 percent, Xbox software and services revenue growth saw an increase of 21 percent offset by lower hardware revenue. This recent period was the first full quarter in which stores were stocked with an update to that product - Microsoft's best-selling Surface - and a totally new category, a laptop computer with a clamshell design. Credit Suisse analysts Michael Nemeroff, Alexander Hu and Christopher Rochester weighed in with a statement showing expectations of strength in its commercial cloud business.
"We have been impressed by solid execution and strong customer adoption of Microsoft's cloud applications and platforms", KeyBanc analyst Brent Bracelin wrote.More news: Vegas shooter's brother arrested on child porn charges
Overall, Microsoft posted $6.58 billion in net income, or 84 cents a share, compared with a profit of $5.67 billion, or 72 cents a share, a year ago.
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