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Microsoft (NASDAQ:MSFT) shares hit the highest intraday price since 2015 as burgeoning demand for cloud products helped the world’s largest software maker to beat profit estimates for its fiscal first quarter.
The shares rose to as high as $53.61 and were trading at $52.98, up 10.3% at 1:21 p.m. in New York.
Net income increased to $4.62bn, or $0.57 per share, in the three months ended September 30, from $4.54bn, or $0.54 per share, a year earlier, the Redmond, Washington,-based company said in a statement on Thursday.
Removing items, the company earned $0.67 per share, exceeding analyst estimates compiled by Capital IQ.
Adjusted revenue decreased 6.6% to $21.66bn, but topped the Wall Street consensus of $21.03bn.
Microsoft has been boosting its cloud businesses, which offer recurring revenues rather than the one-time sales associated with its conventional businesses.
Revenue in a new unit called the Intelligent Cloud rose 8%, or up 14% excluding currency effects.
Microsoft said revenue from its Azure cloud service more than doubled, while revenue from Office 365, the cloud version of its popular productivity software, jumped nearly 70%.
The Microsoft Productivity and Business Processes unit that includes Office products posted a revenue decline of 2.8%.
The company, well known for its PC operating system, introduced the new Windows 10 version in the latest quarter as a free download.
Another division, called More Personal Computing, retreated 17%, or 13% in constant currency.