REDMOND, Wash. (AP) — Microsoft Corp. reported revenue and earnings for its fiscal second quarter that topped Wall Street expectations, as the company sold 3.9 million Xbox One consoles to retailers and doubled revenue from its line of Surface tablets from a quarter earlier.
Revenue rose 14 percent to $24.52 billion.
Analysts polled by FactSet expected earnings of 68 cents per share on revenue of $23.67 billion.
Surface revenue rose to $893 million in the quarter, up from $400 million in the three months through September.
Microsoft said revenue from its flagship operating system fell just 3 percent, reflecting a 12 percent gain from PCs that its partners sold to enterprises. Windows revenue from consumer purchases fell.
Overall, revenue from its devices and consumer segment grew 13 percent to $11.91 billion, while revenue from commercial products like server operating systems and cloud computing services grew 10 percent to $12.67 billion.