Microsoft on Thursday reported quarterly profits ahead of most expectations, as revenues got a boost from its Xbox consoles and Internet "cloud" services for enterprises.
Net profit in the quarter dipped to US$4.5 billion (S$5.74 billion) from US$5.2 billion in the same period a year ago, but topped most analyst forecasts.
Revenue rose above US$23 billion, its best ever for the fiscal first quarter.
The better-than-expected results pushed shares of the US technology titan up 2.75 per cent to US$46.30 in after-hours trade.
"We are innovating faster, engaging more deeply across the industry, and putting our customers at the centre of everything we do, all of which positions Microsoft for future growth," Microsoft chief executive Satya Nadella said in a release.
Microsoft said revenue hit a record high for its first fiscal quarter, aided by the popularity of its Xbox video game consoles and Surface tablet computers, along with businesses turning to software offered as services in the Internet "cloud." "Customers are embracing our latest technologies from Surface Pro 3 and Office 365 to ("cloud"-based) Azure and SQL Server" for corporate customers, Microsoft chief operating officer Kevin Turner said.
Revenue in Microsoft's Devices and Consumer unit grew 47 per cent to US$10.96 billion, with the company bringing in nearly US$1 billion from sales of its Surface Pro 3 tablet computer.
Xbox sales more than doubled to 2.4 million in the quarter, which saw the newest version of the console release in 28 new markets.
Revenue was up 10 per cent when it came to commercial offerings, with "cloud" services such as Office 365 and Azure growing 128 per cent, according to Microsoft.