Microsoft on Wednesday reported its latest solid quarterly report card to Wall Street, buoyed by another round of business customers signing up for its cloud computing services.

The company reported fiscal first-quarter profit of $10.7 billion, up 21% from the same period last year.

“The world’s leading companies are choosing our cloud to build their digital capability,” said Satya Nadella, chief executive officer of Microsoft, in a statement. “We are accelerating our innovation across the entire tech stack to deliver new value for customers and investing in large and growing markets with expansive opportunity.”

The net income of $1.38 per share beat Wall Street expectations. The average estimate of 13 analysts surveyed by Zacks Investment Research was for earnings of $1.25 per share.

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The software maker posted revenue of $33.1 billion in the July-September period, up 14% from last year and also beating forecasts. Ten analysts surveyed by Zacks expected $32.2 billion.

“It was a strong start to the fiscal year with our commercial cloud generating $11.6 billion in revenue for the quarter, up 36% year over year,” said Amy Hood, chief financial officer of Microsoft.

(You can read the full earnings report online.)

Microsoft shares have risen 35% since the beginning of the year, while the Standard & Poor’s 500 index has risen 20%. In the final minutes of trading on Wednesday, shares hit $137.11, an increase of 27% in the last 12 months. It’s been dueling with Apple this season as the most valuable company in the S&P 500.

Nadella has been rewarded for his efforts in steadily lifting the company’s earnings since taking over in 2014. His compensation was $42.9 million in the fiscal year that ended in June, a 66% raise over the previous year, according to a statement filed last week ahead of the company’s annual shareholder meeting in December.

That included a $1 million base salary increase, which the board said it awarded because of “his significant contributions to Microsoft’s success during his tenure as CEO” and a desire to encourage his “continued strong leadership.”

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The strongest sales growth has come from adding new corporate and government clients to Microsoft’s Azure cloud computing platform. Azure’s quarterly revenue grew 59 percent from the same time last year, much of that powered by contracts worth at least $10 million each, the company said.

A less profitable part of Microsoft’s business has been its consumer products, such as Xbox, which saw no revenue growth in the quarter, and Surface laptops, which declined 4%. The Surface team, though a small part of Microsoft’s business, launched a new line of devices this fall and expects demand to pick up during the holiday season.