Lisa Eadicicco
The cloud division, which includes Azure, grew revenue by 5% to $6.3 billion (£4.3 billion) and the company managed to see a smaller decline in its revenue from Windows sales than Wall Street expected.
Surface, made up of the tablet line, grew revenue by 29% to $1.4 billion (£970 million), while the mobile division, which is predominantly Lumia phones, shrank by nearly 50%.
Windows phones have not been selling well and Microsoft is now seeing a decline in both its smartphone business - which had sales of 4.5 million - and its "dumb" phone business.
As The Verge notes, Microsoft's mobile business is all-but dead. No amount of new hardware can save the operating system which, according to some estimates, has around 1.7% of the global market.
Benedict Evans, a partner at VC firm Andreessen Horowitz, made a chart that shows all sales of Windows Phones over time and it shows just how brutally the business has failed.
Sorry, Windows Phone. 110m lifetime sales - 4.5bn iOS & Android phones sold in the same period pic.twitter.com/CO03XWhYJg
- Benedict Evans (@BenedictEvans) January 28, 2016
According to Evans, over 4.5 billion iOS and Android have been sold in the same period of time, making Microsoft's business look even worse.