Microsoft Corporation (NASDAQ: MSFT) reported its third quarter financial results and beat analysts’ estimates. Shares opened higher at $97.55, increasing 3 percent from Thursday’s close.

For the first quarter, Microsoft reported revenue of $26.8 billion, increasing 16 percent year over year and topping Thomson Reuters’ estimates of $25.77 billion. The company reported an EPS of $0.95, surpassing Thomson Reuters’ estimates of $0.85.

“Our results this quarter reflect the trust people and organizations are placing in the Microsoft Cloud,” said Satya Nadella, chief executive officer of Microsoft. “We are innovating across key growth categories of infrastructure, AI, productivity, and business applications to deliver differentiated value to customers.”

Microsoft’s revenue was driven by its biggest segment, More Personal Computing. The segment reported revenue of $9.9 billion, increasing 13 percent year over year and beating FactSet’s estimates of $9.25 billion. The business includes Microsoft’s Office products, LinkedIn and dynamics products and cloud services.

Revenue in Productivity and Business Processes was $9.0 billion, increasing 17 percent year over year. Intelligent Cloud revenue was $7.9 billion, also increasing 17 percent year over year. Server products and cloud services revenue increased 20 percent.

“We delivered double-digit revenue and operating income growth driven by 58% growth in our commercial cloud revenue.” said Amy Hood, executive vice president and chief financial officer at Microsoft.

Microsoft provided its guidance on a call after the release of its earnings. Hood forecasted revenue to be in between $28.8 billion and $29.5 billion for the fourth quarter. Wall Street analysts are forecasting revenue of $28.01 billion.

Hood also commented that 2019 fiscal year will continue to see revenue growth, drive by the transition into cloud services.

Microsoft shares are up 11.5 percent this year.