Microsoft's (MSFT) bet on the cloud continues to pay off.
On Wednesday, the company said sales for its most recent quarter rose 14% to $30.6 billion, which was above Wall Street's estimates. The increase in revenue was helped by the company's commercial cloud business, which jumped 41% to $9.6 billion from last year.
Earnings-per-share also beat analysts' expectations. The stock rose more than 2% in after-hours trading.
The company has heavily invested in cloud services in the last several years, shifting focus away from its legacy business, Windows.
Microsoft's efforts have placed the company near the top of the fast-growing cloud technology sector. Its key cloud-computing platform is Azure, which competes with Amazon Web Services (AWS).
Analysts say Amazon (AMZN) and Microsoft are the leaders in the cloud space, while Google (GOOG) is a "distant" third, followed by Oracle (ORCL) and IBM (IBM).