Intelligent Cloud revenue rose 14% to $6.9 billion, including a 17% increase in server products and cloud revenue and a 1% increase in Enterprise Services revenue.
Analysts surveyed by S&P Global Market Intelligence expected the company to report $23.6 billion in revenue and 72 cents in adjusted earnings per share.
Revenue from Azure, the company's cloud computing service, grew 90 percent during the quarter, Microsoft said. Office commercial revenue grew 10 percent, Office consumer revenue was up 12 percent, and Dynamics revenue increased 13 percent.
Cloud goal: Microsoft topped its goal of passing $20B in commercial cloud ARR this fiscal year. That's in large part to the continued growth of Microsoft's cloud business. As usual, things like Surface, Office 365, cloud services like Azure, and Windows all saw growth.
Despite doom and gloom about its platforms, Microsoft had no problem impressing investors and analysts this quarter, generating earnings of $0.84 per share, well beyond the $0.72 per share analysts were expecting. Analysts on average had expected $6.70 billion, according to financial data and analytics firm FactSet.
In fiscal 2017, this segment fell 4%, reporting ~$38.8 billion in revenues and contributing 43% to overall revenues.
As you can see from the image above, the biggest areas of growth, in terms of percentage, are Azure, Dynamics 365, and Office 365 commercial.
Revenue in Microsoft's More Personal Computing segment, which includes Windows as well as the mobile-phone and gaming businesses, stayed flat at about $9.4 billion.
Looking at Microsoft's past year, the company pushed heavily on its cloud business, including Microsoft Azure - which saw a revenue rise of 97 percent year-over-year last quarter. Microsoft did say that revenue from Xbox software did go up by 21 percent, so it seems that current owners are spending some money on the platform at least. Search acquisition costs jumped 15 percent. Revenue in Intelligent Cloud rose 14% to $6.92 billion, while revenue in Productivity and Business Processes climbed 28% to $8.24 billion.