U.S. Markets closed

Microsoft cloud business booms 20%

Daniel Howley
Technology Editor

Microsoft ( MSFT ) on Wednesday reported revenue of $32.5 billion, which was in line with expectations. Earnings per share came in at $1.08 per share versus analysts’ estimates of $1.09 per share. The stock is down 2.5% in after hours trading.

Microsoft’s cloud business, the cornerstone of the company’s pivot to cloud computing, raked in $9.4 billion of revenue in the quarter. That’s an increase of 20%.

The company’s Productivity and Business processes segment, which includes the company’s Office line of software, saw revenue of $10.1 billion. That’s a jump of 13%.

The firm’s More Personal Computing business, which includes Windows, saw $13 billion in revenue, a 7% increase.

Microsoft’s successes in the cloud and its decision to work across multiple devices and operating systems rather than with Microsoft products alone have sent its market value soaring.

Amazon’s ( AMZN ) Amazon Web Services (AWS) is still the top dog in the cloud market, but Microsoft is catching up, and has a solid second-place position with Google ( GOOG , GOOGL ) trailing behind in third.

Microsoft CEO Satya Nadella (AP Photo/Ted S. Warren, File)

More from Dan:

Email Daniel Howley at dhowley@oath.com; follow him on Twitter at @DanielHowley . Follow Yahoo Finance on Facebook , Twitter , Instagram , and LinkedIn.finance.yahoo.com/