Cloud Pushes Microsoft Earnings Above Expectations, Stock Climbs

Microsoft’s quarterly earnings report today impressed investors, who nudged the stock up 3% after the company announced it exceed analyst expectations.

Microsoft generated more than $22 billion in revenue during the quarter, thanks largely to a 102% revenue growth from Azure, the company’s cloud offering.

“The Microsoft Cloud is seeing significant customer momentum and we’re well positioned to reach new opportunities in the year ahead,” CEO Satya Nadella said in a release.

Overall, cloud revenues grew 7% for Microsoft. However, Windows Phone has been a drag on the company—smartphone sales slid 71%, and Microsoft could save up to $800 million by simply shuttering the hardware division, analysts believe.

Cloud services also gave IBM a strong quarter this week.

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