Microsoft said revenue from its “Intelligent Cloud” segment increased 20% to $ 13 billion in the first quarter, with 48% growth in Azure. Analysts had expected revenue of $ 12.7 billion, according to IBES data from Refinitiv.
The value of Microsoft’s future recurring revenue contracts for commercial cloud customers remained stable at $ 107 billion from the previous quarter, and its proportion of one-time deals increased slightly. Investors often prefer recurring income contracts because they are more predictable over time.
Revenue for its personal computing division, which includes Windows software and Xbox game consoles, rose 6% to $ 11.8 billion.
The company’s revenue rose 12% to $ 37.2 billion in the quarter ended September 30, beating analysts’ estimates of $ 35.72 billion.
Net income rose to $ 13.89 billion, or $ 1.82 per share, from $ 10.68 billion, or $ 1.38 per share, a year earlier. Analysts expected earnings of $ 1.54 per share.
Shares of the software company rose 1 percent to $ 215.40 under extended trading.