Microsoft hit a new all-time high in after-hours trading on Thursday, as its shares bounced above $80 after shooting through Wall Street’s earnings estimates.

Microsoft shrugged off sluggish PC sales to post revenue growth of 12 per cent to $24.5bn, about $1bn more than had been predicted.

Net income went up 16 per cent to $7.7bn, with earnings growing at the same rate to 85 cents, well ahead of analysts’ predictions.

The software group said alongside Thursday’s results that it had hit a big cloud revenue target earlier than expected. Annualised run-rate revenues for Microsoft’s “Commercial Cloud” — which includes Azure, Office 365 and other units — hit $20bn. The metric is based on multiplying the last month of the quarter by 12. On a standalone basis, Azure saw 90 per cent year-on-year growth for the quarter.

That all helped to offset a flat year-on-year performance for Microsoft’s “More Personal Computing” unit, still its largest line of business, which includes Windows software, Xbox games consoles and its Surface devices. The division saw $9.4bn in sales in the quarter, compared with $8.2bn for “Productivity and Business” and $6.9bn for the “Intelligent Cloud”.

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