Shares of Microsoft (NASDAQ:MSFT) stumbled slightly in after-hours trading on Tuesday following the revelation of its fiscal second-quarter results, wherein the $3 trillion tech titan outperformed expectations, fueled by robust performance from its Azure cloud business.

For the quarter concluding on December 31, Microsoft posted earnings of $2.93 per share on $62 billion in revenue. The overall cloud revenue surged by 24% year-over-year to $33.7 billion. Notably, Azure’s growth during the period stood at 30%, or 28% in constant currency, exceeding the company’s previous guidance.

The Intelligent Cloud segment, encompassing Azure, SQL Server, Windows Server, and Nuance, raked in $25.9 billion in sales for the period, surpassing the earlier forecast of $25.1 billion to $25.4 billion.

The More Personal Computing division, which includes the recently acquired Activision, Windows, Surface, and Xbox, amassed $16.9 billion in sales, sitting at the upper end of the earlier guidance of $16.5 billion to $16.9 billion.

Notably, Productivity and Business Processes revenue, encompassing Office, LinkedIn, and Dynamics, experienced a 13% rise, reaching $19.2 billion.

A consensus of analysts had anticipated the company to secure earnings of $2.77 per share on $61.13 billion in revenue.

Microsoft’s chairman and CEO, Satya Nadella, emphasized, “We’ve moved from talking about AI to applying AI at scale. By infusing AI across every layer of our tech stack, we’re winning new customers and helping drive new benefits and productivity gains across every sector.”

Looking ahead to the next quarter, Microsoft foresees overall revenue to range between $60 billion and $61 billion, with Azure revenue growth expected to remain stable in comparison to the second quarter.

(Story has been updated to include guidance from the conference call.)