Microsoft stock rose as much as six % in lengthy trading on Tuesday after the company reported fiscal second-quarter earnings Azure cloud revenue growth and quarterly revenue guidance that exceeded analysts’ expectations.

Here’s the way the business did:

Earnings: $2.03 a share, altered, vs. $1.64 a share as expected by analysts, according to Refinitiv.
Revenue: $43.08 billion, vs. $40.18 billion as anticipated by analysts, as reported by Refinitiv.
Microsoft revenue grew 17 % on an annualized foundation, up from 12 % growth in the prior quarter, in accordance with a statement.

With respect to guidance, Microsoft views $40.35 billion to $41.25 billion in fiscal third quarter revenue. The middle of the range, at $40.8 billion, implies 16.5 % development and is over the $38.70 billion popular opinion among analysts polled by Refinitiv.

In the fiscal second quarter, earnings from Microsoft’s Intelligent Cloud home business group totaled $14.60 billion. The segment includes the Azure public cloud, server solutions for instance Windows Server, GitHub and enterprise services. Revenue was up 23 % season over year and also higher than the $13.77 billion popular opinion with analysts polled by FactSet.

Microsoft said Azure revenue expanded 50 %. Analysts had likely around forty two % development. Microsoft does not disclose Azure revenue in bucks.

The more Personal Computing segment, containing Windows, gaming, devices and search advertising, created $15.12 billion in profits, which has been up fourteen % and came in higher compared to the $13.47 billion FactSet popular opinion estimate. Technology business analysis company Gartner believed that PC shipments, excluding Chromebooks, grew 10.7 % of the quarter.

The segment’s operating margin narrowed to 34.6 % from 40 % following the launch of 2 Xbox video-game consoles in November. Analysts polled by FactSet had anticipated a twenty six % margin from the sector. The company now has eighteen million folks subscribing to the Xbox Game Pass program for accessing dozens of online games, up through 15 million in September.

The Productivity and Business Processes segment, including Office, dynamics and Linkedin, developed $13.35 billion in profits, that had been up 13 % plus much more than the $12.89 billion popular opinion.

In the quarter Microsoft made available $500 Xbox Series X and $300 Series S consoles, together with a little variant of the Surface of its Laptop PC known as the Surface Laptop Go. The business even said several of the source code of its had been seen following the company had found malicious SolarWinds software application in its surroundings.

Amy Hood, Microsoft’s financing chief, claimed during a meeting phone call with analysts which she expects double-digit revenue growth and “healthy operating margin expansion” for the full fiscal year, which ends on June 30, even with a change in the valuable life of servers plus savings related to the coronavirus. She said gaming earnings will grow around forty % in the fiscal third quarter, down sequentially from fifty one %.

On Tuesday Microsoft inventory closed at $232.33 a share, posting a new all time high for the first time since September. Excluding the after-hours move, Microsoft shares are actually up around 5 % since the beginning of 2021, although the S&P 500 index is up aproximatelly 3 %.