Microsoft reported a decline in earnings and revenue for its fiscal first quarter as the company’s Azure cloud infrastructure business grew faster than forecast.

Here’s how the company performed compared to the LSEG consensus:

• Earnings per share: $3.30 versus $3.10 expected
• Gain: $65.59 billion versus $64.51 billion expected

Microsoft’s revenue grew 16% year-over-year in the quarter ended September 30, according to a statement. Net income was $24.67 billion, compared to $22.29 billion in the same quarter last year.

In August, Microsoft said it would revise its business segment reporting to reflect its management approach. Mobility and security services, along with a portion of Windows revenues, are now part of the Productivity and Business Processes unit, which also includes Office software.

Productivity and business process revenues totaled $28.32 billion in the quarter. The number is up 12% and higher than the $27.90 billion consensus among analysts surveyed by StreetAccount. It’s 38% higher than the $20.45 billion midpoint of management’s July forecast, as the actual total accounts for the changes.

Investors got a clearer picture of cloud computing consumption at Microsoft as, for the first time, revenue growth from Azure and other cloud services does not include mobility and security and sales of Power BI data analytics. Azure growth for the quarter was 33%. CNBC’s consensus for Azure growth was 32.8%, while StreetAccount’s was 29.4%.

The entire Intelligent Cloud segment, including Azure, Windows Server and enterprise services, generated revenue of $24.09 billion. That’s up 20% and slightly above the StreetAccount consensus of $24.04.

In Alphabet In Tuesday’s earnings report, the internet company said its cloud business, which competes with Azure, grew nearly 35% from a year earlier to $11.35 billion, beating estimates. Amazonwhich leads the cloud infrastructure market, is expected to report results after the close on Thursday.

Microsoft has shrunk the size of its More Personal Computing segment due to changes in reporting. In the first fiscal quarter, it contributed $13.18 billion to revenue. That’s up about 17% and above the StreetAccount consensus of $12.56 billion.

The company saw 2% growth in device sales and sales of Windows operating system licenses to device manufacturers. Industry researcher Gartner estimated that quarterly PC shipments fell 1.3%.

During the quarter, Microsoft worked to help customers recover from a flawed update CrowdStrike security software brought down Windows PCs worldwide. Microsoft said it would work with BlackRock on an investment fund for artificial intelligence infrastructure, with a target of $30 billion in seed capital.

Microsoft’s AI investments remain a key focus for investors as the company builds out its infrastructure and ramps up chip spending to handle heavier workloads. Microsoft is the lead investor in ChatGPT maker OpenAI, which was valued at $157 billion in a funding round earlier this month.

As of September 30, Microsoft had secured more than $108 billion in finance lease deals that had not yet started. According to UBS analysts, this could also include third-party cloud spending to meet demand for AI.

As of Tuesday’s close, Microsoft was up about 15% this year, while the Nasdaq has gained about 25% over the same period.

Executives will discuss the results and provide guidance during a conference call with analysts beginning at 5:30 PM ET.

Correction: An earlier version of this story had an incorrect quarter-end date. It was September 30th.