Microsoft released its first fiscal quarter earnings report after closing bell tonight, posting adjusted earnings of 67 cents per share on GAAP revenue of $20.4 billion. Analysts had been expecting earnings of 59 cents per share and $21.03 billion in revenue. In last year’s third quarter, the software giant posted earnings of 65 cents per share and $23.2 billion in revenue.

Microsoft Corporation Stock Surges After Earnings Beat

New reporting structure at Microsoft

Microsoft Corporation (NASDAQ:MSFT)’s GAAP earnings were 57 cents per share, while non-GAAP revenue was $21.7 billion. This was the first quarter in which the software giant recorded some deferred revenue from Windows 10.

“We are making strong progress across each of our three ambitions by delivering innovation people love,” said Microsoft 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.”

This marked Microsoft’s first earnings report under its new reporting structure, something analysts have been looking forward to for some time. Microsoft shares surged in after-hours trades, climbing as much as 5.77% to $50.80 per share.

Mixed segment results at Microsoft

The company’s Productivity and Business Processes segment saw revenue fall 3% but rise 4% in constant currency on exceptional strength in Office 365 revenue. Microsoft had 18.2 million Office 365 subscribers at the end of the quarter and added about 3 million of them during the September quarter.

Intelligent Cloud revenue increased 8% but rose 14% in constant currency on the back of strength in Azure, which saw usage more than double year over year. The number of Enterprise Mobility customers also more than doubled to more than 20,000 and the installed base climbed by nearly six times from last year.

The More Personal Computing segment saw revenue fall 17% but decline 13% in constant currency. Phone revenue tumbled 54% in constant currency, while Windows OEM revenue fell 6%, beating the overall PC market. Search ad revenue, excluding traffic acquisition costs, increased 29% in constant currency. The company also saw the number of monthly active users of Xbox live climb 28% year over year to 39 million.