Microsoft Corporation (NASDAQ:MSFT) released its latest earnings report after closing bell, posting adjusted earnings of 69 cents per share on $22.6 billion in non-GAAP revenue. Analysts had been expecting earnings of 58 cents per share on $22.14 billion in sales. In last year’s fourth fiscal quarter, the company posted $22.18 billion in revenue and 62 cents per share in adjusted earnings.

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Microsoft (MSFT) swings back to profit

Microsoft Corporation (NASDAQ:MSFT)’s GAAP earnings were 39 cents per share, compared to last year’s loss of 40 cents per share, while GAAP revenue was $20.6 billion.

The company’s Productivity and Business Processes segment recorded a 5% increase in revenue or 8% in constant currency, bringing it to $7 billion. Microsoft saw a 5% increase or 9% in constant currency in its Office commercial products and cloud services. Office 365 commercial sales surged 54% or 59% in constant currency, boosting the entire segment. The Office consumer products sales increased 19% or 18% in constant currency as Microsoft now has 23.1 million Office 365 consumer subscribers. Revenue from the Dynamics products increased 6% or 7% in constant currency.

Intelligent Cloud revenue increased 7% or 10% in constant currency, bringing it to $6.7 billion. The company saw a 5% increase in server products and cloud services revenue and a 102% increase in Azure revenues. Azure compute usage more than doubled since last year. Microsoft also nearly doubled the number of Enterprise Mobility customers to more than 33,000, while the installed base increased by nearly 2.5 times since last year.

Microsoft (MSFT) still failing in phones, but Surface is catching on

More Personal Computing revenue fell 4% or 2% in constant currency to $8.9 billion. Windows OEM non-Pro revenue increased 27% to outpace the consumer PC market, while Surface revenue grew 9% with the Surface Pro 4 and Surface Book as the main drivers. Phone sales plummeted 71% or 70% in constant currency, but the number of Xbox Live monthly active users increased 33% to reach 49 million.

Excluding traffic acquisition costs, search ad revenue increased 16% or 17% in constant currency as Windows 10 continued to benefit this metric.

Microsoft Corporation (NASDAQ:MSFT) said it will provide guidance on the earnings call. The company’s stock surged 4% initially after the earnings report was released. As of this writing, it is up 3.07% at $54.72 per share.