Microsoft Corporation (NASDAQ:MSFT) released the earnings results from the second quarter of its fiscal 201 after closing bell tonight, posting adjusted earnings of 78 cents per share, compared to the analyst estimate of 71 cents per share. Revenue was $25.7 billion or $23.8 billion on a GAAP basis, compared to the consensus of $25.26 billion.

Net earnings were 62 cents per share.

Microsoft showcases cloud strength

Microsoft saw its Productivity and Business Processes revenue fell 2% but increased 5% in constant currencies to $6.7 billion as Office and cloud services revenue was driven by growth in Office 365, which saw almost a 70% constant currency revenue increase. The software giant had 20.6 million Office 365 consumer subscribers as of the end of the quarter and recorded an 11% constant currency increase in Dynamics revenue.

Intelligent Cloud revenue climbed 5% or 11% in constant currency with a 140% increase in Azure revenue in constant currency. More than one-third of Fortune 500 companies are using Microsoft’s Enterprise Mobility solutions.

“Businesses everywhere are using the Microsoft Cloud as their digital platform to drive their ambitious transformation agendas,” said Microsoft CEO Satya Nadella in a statement. “Businesses are also piloting Windows 10, which will drive deployments beyond 200 million active devices.”

Microsoft sees continued declines in PC business

The More Personal Computing segment saw a 5% decline in revenue or a 2% decline in constant currency, bringing it down to $12.7 billion. Windows OEM sales fell 5% in constant currency but outperformed the PC market on the back of a higher consumer premium and mid-range device mix. Surface revenue climbed 29% in constant currency on the back of strong launches of the Surface Pro 4 and Surface Book.

Phone revenue fell 49% in constant currency, while search ad revenue climbed 21% in constant currency. Xbox Live monthly active users increased 30% year over year to reach a new record of 48 million.