Microsoft reported 28.9 billion dollars (£20.4 billion) in revenue for the past three months.
The technology giant’s revenue was up 12% on 25.8 billion dollars (£18.2 billion) from the same period in 2016.
The Windows maker’s operating income for the last quarter was 8.7 billion dollars (£6.1 billion).
Chief executive Satya Nadella said: “This quarter’s results speak to the differentiated value we are delivering to customers across our productivity solutions and as the hybrid cloud provider of choice.
“Our investments in IoT, data, and AI services…position us to further accelerate growth.”
Microsoft chief executive Satya Nadella praised the company’s cloud business as it reported a boost in quarterly results (Lauren Hurley/PA)
The number of subscribers to Office 365, the cloud-based version of Office that enables users to access Word, Excel and PowerPoint anywhere, rose to 29 million, according to the results.
Microsoft’s gaming arm Xbox also reported an increase in revenue, up 8% on the previous quarter.
The firm’s main hardware product, the tablet-laptop hybrid Surface, saw a revenue increase of 1% on the last quarter.
The tech giant’s chief financial officer Amy Hood said: “We delivered another strong quarter with commercial cloud revenue growing 56% year-over-year to 5.3 billion dollars (£3.7 billion).
“Strong execution from our sales teams and partners is driving growth across our businesses.”