Microsoft (NASDAQ: MSFT) reported Q1 adjusted EPS of $0.65, versus the analyst estimate of $0.55. Revenue for the quarter came in at $23.2 billion versus the consensus estimate of $22.02 billion.

Devices and Consumer revenue grew 47% to $10.96 billion. Commercial revenue grew 10% to $12.28 billion.

"We are innovating faster, engaging more deeply across the industry, and putting our customers at the center of everything we do, all of which positions Microsoft for future growth,” said Satya Nadella, chief executive officer of Microsoft. “Our teams are delivering on our core focus of reinventing productivity and creating platforms that empower every individual and organization.”

“We delivered a strong start to the year, with continued cloud momentum and meaningful progress across our device businesses,” said Amy Hood, executive vice president and chief financial officer of Microsoft. “We will continue to invest in high-growth opportunities and drive efficiencies across the organization to deliver long-term shareholder value.”

Devices and Consumer revenue grew 47% to $10.96 billion, with the following business highlights:

• Office 365 Home and Personal subscribers totaled more than 7 million, representing more than 25% sequential growth over the previous quarter.
• Surface Pro 3 momentum drove Surface revenue of $908 million.
• New Windows consumer licensing programs drove positive unit growth while OEM non-Pro revenue declined 1%.
• Total Xbox console sales were 2.4 million, growing 102%, and Xbox One launched in 28 new markets.
• Phone hardware revenue exceeded $2.6 billion with ongoing focus on execution discipline.

Commercial revenue grew 10% to $12.28 billion, with the following business highlights:

• Server products and services revenue increased 13%, with double-digit growth for SQL Server, System Center and Windows Server.
• Office Commercial products and services revenue grew 5% as customers transition to Office 365.
• Commercial cloud revenue grew 128% driven by Office 365, Azure and Dynamics CRM.
• Lync, SharePoint and Exchange, our productivity server offerings, collectively grew double-digits.
• Windows volume licensing revenue increased 10%.

Customers are embracing our latest technologies from Surface Pro 3 and Office 365 to Azure and SQL Server,” said Kevin Turner, chief operating officer of Microsoft. “Through great execution by our sales teams and our partners, we have been able to deliver our truly differentiated value to the marketplace.”