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Microsoft’s cloud computing business helped the company beat earnings expectations for the second straight quarter with adjusted quarterly revenue of $22.3 billion, an increase of 3 percent from the year-ago quarter, and profits of 76 cents per share ($6 billion total net income), an increase of 9 percent.

Microsoft’s stock is up 5 percent in after-hours trading and reached an all-time high, surpassing $60 per share. The company’s market capitalization now exceeds $450 billion.

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Analysts surveyed in advance by Thomson Reuters expected Microsoft to report earnings per share of 68 cents on revenue of $21.7 billion for its FY17 Q1 report.

“We are helping to lead a profound digital transformation for customers, infusing intelligence across all of our platforms and experiences,” Microsoft CEO Satya Nadella said in a statement. “We continue to innovate, grow engagement, and build our total addressable market.”

On the company’s earnings call, Nadella said he was “proud of the continued progress” and stressed how Microsoft is investing heavily in artificial intelligence and machine learning across its entire tech stack.

Satya Nadella speaks at Microsoft Ignite 2016 (GeekWire Photo/Kevin Lisota)
Satya Nadella speaks at Microsoft Ignite 2016 (GeekWire Photo/Kevin Lisota)

The earnings beat was propelled in part by Microsoft’s cloud platform. Revenue grew 8 percent to $6.4 billion in the company’s Intelligent Cloud division, which includes the Azure cloud computing platform, Microsoft SQL Server, and enterprise technologies. Its commercial cloud revenue run rate — calculated by multiplying revenue for the quarter’s last month by 12 — topped $13 billion, up 59 percent year-over-year.

Chris Suh, Microsoft’s head of investor relations, told GeekWire that the company is still on track to hit a $20 billion commercial cloud revenue run rate in FY18.

“We feel pleased with results,” he noted. 

Nadella added that more than 60 percent of Fortune 500 companies have at least three of Microsoft’s cloud offerings, up 20 percent year-over-year.

Revenue in “More Personal Computing,” the company’s largest division, fell by 2 percent to $9.3 billion due to lower revenue from Devices and Gaming. The company said Windows revenue was flat and “slightly ahead of the PC market.” Search advertising revenue, excluding traffic acquisition costs, grew 9 percent to $409 million.

Related: Microsoft’s cloud computing business posts $6.4B in Q1 revenue, accounts for 29% of total sales

In the Productivity and Business Processes division, revenue was up 6 percent to $6.7 billion. Microsoft said Office commercial products and cloud services revenue was up 5 percent, including 51 percent growth in Office 365 commercial revenue. Office 365 consumer subscribers increased to 24 million.

Thanks to the Surface Pro 4 and Surface Book, Microsoft’s Surface revenue increased $253 million, or 38 percent, from the year-ago quarter. Phone revenue declined by $799 million, or 72 percent, as the company continues to reduce the scope of its Windows Phone business.

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Microsoft announced last month that Windows 10 has reached 400 million active devices 14 months after its release.

Microsoft said on Thursday it still expects to close its $26 billion acquisition of LinkedIn in the current quarter. It will include LinkedIn results as part of its Productivity and Business Processes segment. Salesforce, which wanted to acquire LinkedIn earlier this year, said last month that it plans to ask regulators in the U.S. and Europe to investigate the deal, citing antitrust concerns.

This is also the first quarter with Microsoft disclosing new three financial metrics: Commercial Cloud gross margin percentage, gaming revenue, and Windows commercial products and cloud services revenue.

Here’s a look at Microsoft’s stock price over the past three decades:

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