Earnings for the quarter were $ 1.82 per share, exceeding $ 1.55 per share.
“The next decade of economic performance for every business will be determined by the speed of their digital transformation,” Nadella said in an interview with analysts on Tuesday.
Analysts say the company’s cloud business growth is still in its infancy.
Wedbush analyst Dan Ives said in a note to investors on Tuesday: “This cloud shift and dynamic WFH look here to stay and the company stands to be a major beneficiary of this trend.”
Investors may have some concerns about Azure’s growth rate, despite strong earnings. Microsoft shares fell nearly 2 percent in after-hours trading on Tuesday night. Azure’s revenue growth rate of 48% in the quarter was down from 59% in the same period last year.
However, some analysts argue that the slowdown is due to the size of the business. Nadella said Tuesday he expects technology spending to double in the next 10 years.
Gaming also brings significant growth opportunities for Microsoft.
“Gaming is one of the largest and fastest growing forms of entertainment in the world,” said Kyle Vikstrom, Microsoft’s director of investor relations.
“We are seeing an excellent response early on to the console to launch next quarter,” said Vikstrom.
Correction: Kyle Vikstrom, Microsoft’s director of investor relations, says the company expects to generate more than $ 200 billion in gaming revenue by 2021. An earlier version of the story said it expected 2020.