Microsoft outperforms the revenue predictions of industry analysts for its last quarter by about $1 billion. The analysts made a forecast of about $32.8 billion, but the company earned $33.7 billion in the fourth quarter of its 2019 fiscal year, which ended on June 30. The revenue of the US tech giant rose by 12% as compared to the previous year, while the annual revenue increased by 14%. It reported $125.8 billion, as its one-year revenue.

The company’s report infused optimism in investors, leading to 2% rise in its share price. It earned $1.37 per share, as compared to the expected $1.21. Overall, Microsoft shares went up by 34% in this year.

The company was applauded for both, entering in $1 trillion market bracket and for successfully expanding in cloud business. Dan Ives, an analyst as Wedbush said in a statement, “This quarter was an absolute ‘blow out quarter’ across the board with no blemishes.”

Investor and the market players acclaimed Microsoft’s CEO Satya Nadella’s leadership and vision especially with regard to its cloud business strategy, in which the company even beat its biggest competitor Amazon.

Microsoft’s Cloud services segment produced $11.39 billion in its Q4 revenue, which was again more than the forecasted figure of $11.02 billion. The company’s cloud services include Azure public cloud, Windows Server, SQL Server, Visual Studio, GitHub and consulting services.

Microsoft’s Azure’s annual earning hiked by 64% year over, which was the lowest it had in the past four years. The company did not give out the exact figure but sounded confident about its high earnings in near future as it signed larger and long-term Azure contracts in the quarter, as compared to the ones in the past.

The company made a significant leap in its fourth quarter, as it acquired Express Logic, launched Azure updates and an Xbox console, without disc drive. Not only did the company witness high revenues but also incurred high capital expenditures as it spent $5.3 billion in the quarter, which was more than it had spent in any other quarter in the past four years.