Microsoft delivered quarterly earnings and revenue that topped analysts' expectations on Thursday.
The technology giant posted earnings of 67 cents per share for the first quarter of its 2016 fiscal year, on revenue of $21.66 billion. Analysts had expected Microsoft to deliver quarterly earnings of 59 cents per share on $21.03 billion in revenue, according to consensus estimates by Thomson Reuters.
Microsoft separately cut 1,000 jobs, or less than 1 percent of its workforce, CNBC confirmed Thursday. It was a new round of cuts and unrelated to the reported quarter.
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"We are making strong progress across each of our three ambitions by delivering innovation people love," said CEO Satya Nadella in a statement. "Customer excitement for new devices Windows 10, Office 365 and Azure is increasing as we bring together the best Microsoft experiences to empower people to achieve more."
Revenue in the company's "More Personal Computing" segment, which includes sales of the Windows operating system, fell 17 percent to $9.4 billion.
Revenue from Microsoft's Intelligent Cloud segment, which includes server products and services such as Windows Server and Azure, rose 8 percent to $5.9 billion.
Phone revenue declined 54 percent in the quarter, which the company said is a reflection of its "updated strategy."
The results were the first under a new financial reporting structure announced last month that reduced reporting segments to three from six.
Under Nadella, Microsoft has been shifting its focus to software and cloud services as demand for the Windows operating system slows.
The earnings report comes on the heels of Microsoft's latest Windows 10 operating system and a series of accompanying devices such as phones, tablets and laptops, as Nadella leads the company toward a model of mobile productivity. The system, seen as critical for the company, won positive reviews for its user-friendly and feature-packed interface.
In particular, Microsoft has made a play at the cloud business as it branches out from a PC-based business focus, incorporating products like Azure and Office 365 into its commercial and enterprise business.
Last quarter, the company beat on both earnings and revenue as its cloud business surged 106 percent year over year.
— CNBC's Fred Imbert, Jon Fortt and Reuters contributed to this report.