Microsoft rallied after it reported fiscal-first quarter earnings that topped expectations, boosted by better-than expected hardware and cloud software sales.
The tech firm handed in earnings of 54 cents per share on revenue of $23.20 billion, beating Wall Street estimates of 49 cents per share on revenue of $22.02 billion, according to a consensus estimate from Thomson Reuters.
The company's devices and consumer revenue grew 47 percent to $10.96 billion, beating forecasts of $10.07 billion, according to StreetAccount.
Computing and gaming hardware sales increased by $1 billion or 74 percent, while phone hardware revenue exceeded $2.6 billion, versus StreetAccount expectations of $2.12 billion.
Commercial revenue totaled $12.28 billion, also topping estimates, with gains of about 10 percent. The company said its lower-margin commercial cloud business grew some 128 percent, but it did not divulged the actual revenue.
We saw good margin structure for our cloud efforts, CEO Satya Nadella said on the firm's analyst conference call.