The Redmond company reported a profit of $7.4 billion, or 95 cents a share, on revenue of $26.8 billion for the quarter.
Revenue was $26.8 billion and increased 16%.
Microsoft announced solid quarterly earnings on Thursday, posting big beats on the top and bottom line against Wall Street expectations.
"We delivered double-digit revenue and operating income growth driven by 58% growth in our commercial cloud revenue".
Windows commercial products and cloud services increased by 21% (17% CC), and that's from a greater volume of products that "carry higher in-quarter revenue recognition".
Shares in Microsoft were little changed in after-hours trade despite the stronger-than-expected results. Credit Suisse's Michael Nemeroff and RBC Capital's Ross Macmillan expect that the business grew 93% in the March quarter, while Morgan Stanley's Keith Weiss is forecasting for the firm to post a 97% surge.
Much of Microsoft's recent growth has been fueled by its cloud computing business as more enterprises seek to cut data storage costs by adopting cloud-based software and moving their applications to data centers. Office 365 commercial products and cloud services revenue grew 12% with Office 365 commercial revenue up 40%.
Further, Gaming Revenue was $2.25 billion dollars for the quarter, which is about $300 million more than the prior year for the same time period.
LinkedIn revenue rose 37% year over year and gaming revenue rose 18% driven by Xbox software and services revenue growth of 24%, primarily on the strength of third-party titles.
Microsoft stock is up 10 percent since the beginning of 2018.