Microsoft says its net income rose 17 percent in its fiscal first quarter despite a decline in Windows revenue from manufacturing partners as its enterprise software business grew.
Net income in the three months to Sept. 30 grew to $5.24 billion, or 62 cents per share, from $4.47 billion, or 53 cents per share, a year ago.
That beat the 54 cents expected by analysts polled by FactSet.
Revenue rose 16 percent to $18.53 billion, also beating the $17.79 billion analysts were expecting.
Microsoft shares jumped 6.4 percent to $35.88 in after-hours trading after the earnings were released.
Revenue from its Surface tablets hit $400 million, representing a gain in unit sales from the quarter that ended in June. It's the first time Microsoft has broken out Surface results.
