The company's largest business segment, More Personal Computing, which includes Windows, devices, games and search ads, generated $ 9.92 billion in revenue, an increase of 13 percent year-over-year. The segment reached above the FactSet consensus of $ 9.25 billion, according to StreetAccount.
The Productivity and Business Processes segment, which includes Office, LinkedIn and Dynamics, earned $ 9.01 billion in revenue, which increased by 16.8 percent and more the FactSet consensus calculation of $ 8.73 billion, according to StreetAccount.
Microsoft's Intelligent Cloud segment, which contains server products and cloud services, grew 17.3 percent with $ 7.90 billion in revenue. The results exceeded the estimated $ 7.68 billion FactSet.
In the third fiscal quarter, Microsoft acquired the data storage company Avere and the gaming company PlayFab, and announced a major reorganization that included the departure of the company's head of Windows and Devices Terry Myerson. The Windows and Devices Group was effectively divided and placed within the Experiences and Devices group (which includes Microsoft Office 365 and other productivity applications) and the Cloud Platform and Artificial Intelligence group (which includes infrastructure products such as Windows Server and the Azure cloud platform).
"We believe that bending Windows in the new Experiences and Devices division, led by a former Office executive, sends a strong signal of the support role, and not leadership, that Windows will likely have in the coming years, and we like the continued emphasis on the hybrid cloud and [artificial intelligence] "Stifel analysts led by Brad Reback wrote in a Sunday note.
But Windows remains the largest revenue contributor to Microsoft's Most Personal Computing business segment. An indicator for Windows sales, IDC PC shipments, was flat year after year in the first quarter of 2018 but better than expected, wrote Stifel analysts.
Intelligent Cloud contains the Azure public cloud, which competes with Amazon Web Services and represents Microsoft's largest growth engine in general. Microsoft, as usual, did not provide an exact revenue figure for Azure, but did say that revenues increased 93 percent year-over-year, which is reduced sequentially from a 98 percent growth in revenue. Stifel analysts said they expected growth of just over 90 percent, while analysts led by Kirk Materne at Evercore ISI said on Sunday they were looking for 82 percent growth.
The slowdown in Azure's revenue growth could have been one of the factors that caused Microsoft's stock to fall immediately after the company reported earnings, said Piper Jaffray analyst Alex Zukin.
Microsoft said its "business cloud," which involves Azure, Office 365, Dynamics 365 and other cloud services, had $ 6 billion in revenue in the fiscal third quarter, up 58 percent year-over-year and 13 percent sequentially.  There were 30.6 million Office 365 consumer subscribers in the quarter, a sequential increase of 29.2 million. On the business side of Office 365, revenue grew 42 percent.
Microsoft shares have risen 10 percent since the beginning of 2018.
These are the latest news. Check the updates again.
– Josh Lipton of CNBC contributed to this story.