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Microsoft Corporation FQ1 2018 Earnings Boosts Shares

Microsoft CEO Satya Nadella at the Geek Wire Summit

Revenue from Azure, which competes with Amazon.com's Amazon Web Services and offerings from Alphabet's Google, IBM and Oracle, grew 90 per cent compared to a 97 per cent growth rate in the preceding quarter.

The Redmond, WA-based software giant reported Q1 earnings per share (EPS) of $0.84, which was $0.12 better than the Wall Street consensus estimate of $0.72.

Microsoft Corporation (NASDAQ:MSFT) FQ1 2018 earnings were released after closing bell tonight, and the company posted earnings of 84 cents per share, a 17% increase from last year, on $24.5 billion in sales, a 12% year-over-year increase. Microsoft got 10 percent more revenue from Office commercial products and cloud services, which includes Office 365 as well as its more traditional Office software.

Microsoft handily beat analysts' expectations for the first quarter of its fiscal year, as its quarterly profit rose 16 percent on the strength of its commercial cloud business. "Our results reflect accelerating innovation and increased usage and engagement across our businesses as customers continue to choose Microsoft to help them transform".

Here's a look at what Microsoft products drove growth. Office 365 subscribers hit 28 million.

As a reward Microsoft's share price climbed 3.4% in after-hours trading to $81.46, giving the company a market cap of more than $626 billion. Seems like cloud computing isn't a bad business to be in these days. To Productivity and Business Processes, LinkedIn contributed $1.1 billion.

Investors will likely be pleased by the progress Microsoft showed in its all-important cloud computing business.

Microsoft reported revenue of $24.5 billion for the quarter, up almost 12 percent over the same period previous year.

The unit includes Windows software, Xbox gaming consoles, online search advertising and Surface personal computers. That's not really a surprise, given that Microsoft has launched a number of new Surface products over the course of the last few months.

As for Windows, revenue from companies putting Pro versions of the operating system on devices was up by 4 percent.