The company's flagship Azure cloud product recorded revenue growth of 89 percent in the fourth quarter ended June 30. Much of Microsoft's recent growth has been fuelled by its cloud computing business, which has benefited from companies rushing to shift their workloads to the cloud to cut data storage and software costs. Microsoft shares have risen 180 percent since Satya Nadella took over as chief executive in 2014, refocusing the company on cloud computing rather than PC software.
After initially moving not much at all, Microsoft stock jumped over 4% in after-hours trading. Notably, this marks the end of Microsoft's 2018 fiscal year. For the quarter, Microsoft showed strong growth in all three of its major reporting areas - especially in cloud computing, where Wall Street most wants to see growth.