Microsoft reported quarterly earnings that toppled analysts' expectations Thursday as its key cloud product nearly doubled its revenue.

Microsoft's cloud business brought in $6.86 billion in revenue during the fiscal second quarter. That figure came in both above analyst expectations and the company's own guidance.

Analysts expected the company's cloud business to bring in about $6.73 billion in revenue, according to a StreetAccount consensus estimate. That figure was in the high end of the range Microsoft projected for the segment — $6.55 billion to $6.75 billion.



The company said revenue from its major cloud offering, Azure, grew 93 percent year over year.



Growth in cloud revenue is seen as a key indicator of Microsoft's progress as the company transitions away from legacy businesses. In October, the stock broke through its 1999 highs after the company said Azure saw revenue growth of 116 percent.

