Microsoft has reported a 17.5% rise in revenues to $23.38bn for its April-June quarter, above analysts' average estimate of $23bn. However, profits were down 7% to $4.6bn with $692m in losses for its Nokia division. Microsoft bought Nokia in April to take on Apple and Samsung in the smartphone market.
While the Nokia business added almost $2bn to Microsoft's quarterly revenue, it also posted an operating loss for the period.
The technology giant said it sold 5.8 million Lumia smartphones and 30.3 million low-end phones during the quarter - totalling 36.1 million handsets for the period.
Earlier this month, Microsoft announced it was cutting 18,000 jobs from its global operations with 12,500 jobs cuts in the Nokia phone division.
'We are driving growth with disciplined decisions, bold innovation, and focused execution,' said Microsoft CEO Satya Nadella (pictured) in a statement.
He continued: 'We are galvanised around our core as a productivity and platform company for the mobile-first and cloud-first world, and we are driving growth with disciplined decisions, bold innovation, and focused execution.'
Satya took over as chief executive from Steve Ballmer in February.