Since Satya NADELLA took office in 2014, Microsoft has been promoting the diversification of Windows operating system software and focusing on cloud service business, through which customers can transfer their computing jobs to the data center managed by Microsoft.
The strong performance of cloud service business led Microsoft's market value to break the $1 trillion mark for the first time in April. But the business faces fierce competition between AWS from Amazon. O and Google, a unit of alphabet.
"Microsoft's earnings are strong across the board and almost all major projects are better than expected," said Brent thill, an analyst at Jefferies.
Daniel Morgan, senior portfolio director of synovus trust company, said that azure, an important project, was slightly lower than analysts expected.
"Azure (revenue growth) is 59% and the market is expected to be 60%," he said. "Besides, it's a good financial report, but if you want to find fault, that's where you can find it."
In the second quarter, global cloud infrastructure service spending rose nearly 38% to $26.3 billion year-on-year, according to research firm canalys. Amazon's AWS still dominates the market with a market share of 31.5%, followed by Microsoft with a market share of 18.1%.
Microsoft's share price rose 34% in the year and fell 0.1% in after hours trading on Wednesday.
The personal computing sector, which accounts for the largest share of revenue, grew 4% to $11.13 billion. The division's businesses include windows software, Xbox game consoles, online search advertising, and surface PCs.
Consumer PC revenue fell 7%, but was offset by a 19% increase in corporate PC revenue, which boosted windows performance.
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