But PC sales will also capture attention, as those (long-slipping) sales continue to be a major part of Microsoft's revenue. Katherine Egbert, senior research analyst at Piper Jaffray, said in a Jan. 15 note that the weak PC sales number led her to trim her revenue forecast, citing a "faster-than-expected deceleration in global PC shipments" as a risk to the company.
Microsoft said its "More Personal Computing" revenue declined 5 percent (down 2 percent in constant currency) to $12.7 billion — primarily due to a fall in phone and Windows revenue. Wall Street had expected $12.29 billion for the business, according to data from StreetAccount.
On the Windows 10 front, Nadella said there are now more than 200 million monthly active devices — with the rate of adoption outpacing any of Microsoft's previous operating systems. The company has a goal of 1 billion active devices on the OS.
Revenue from Microsoft's Surface devices increased 29 percent in constant currency, the company said, citing the launch of its Surface Pro 4 and Surface Book. Phone revenue, however, declined 49 percent controlling for currency.
Amy Hood, Microsoft executive vice president and chief financial officer, said on the company's earnings call that the personal computing segment's outperformance was due in large part to better-than-expected device launches.
"It was a strong holiday season for Microsoft highlighted by Surface and Xbox," Kevin Turner, chief operating officer at Microsoft, said in the company's quarterly release. "Our commercial business executed well as our sales teams and partners helped customers realize the value of Microsoft's cloud technologies across Azure, Office 365 and CRM Online."
Xbox Live's monthly active users grew about 30 percent against the year-ago period to 48 million, and gaming revenue grew 9 percent in constant currency, the company said.
Looking ahead to the fiscal third quarter, Microsoft said it expects revenue of $6.4 billion to $6.6 billion in its Productivity and Business Processes segment (compared to Wall Street's expectation of $6.80 billion). For the Intelligent Cloud segment, the company is looking for revenue between $6.1 billion and $6.3 billion (compared to consensus $6.29 billion), and for More Personal Computing it expects $9.1 billion to $9.4 billion in revenue (compared to $9.32 billion).
The company expects about 4 points of total foreign exchange headwinds for its third quarter, Hood said.
Microsoft announced in February 2014 that Nadella would become its CEO. Since that time, Nadella has sought to reinvigorate the more than $400 billion market-cap company.
— CNBC's Josh Lipton, Ari Levy and Fred Imbert contributed to this report.