Microsoft has reported strong third quarter results, beating Wall Street estimates, thanks to a combination of cloud demand and AI adoption.

Microsoft reported $70.1 billion in revenue, an increase of 13%. The company’s net income came in at $25.8 billion for the quarter, an increase of 18%. Earnings per share came in at $3.46, an increase of 18%.

Interestingly, cloud computing and AI were the two prime drivers, with Intelligent Cloud revenue increasing 21% to $26.8 billion. Dynamics cloud services revenue increased 11%, while Dynamics 365 revenue increased 16%. Meanwhile, Microsoft 265 Commercial products revenue increased 11%, and Microsoft 365 consumer revenue increased 10%.

LinkedIn continues to be a strong growth driver for the company, with its revenue increasing 7%.

“Cloud and AI are the essential inputs for every business to expand output, reduce costs, and accelerate growth,” said Satya Nadella, chairman and chief executive officer of Microsoft. “From AI infra and platforms to apps, we are innovating across the stack to deliver for our customers.”

“We delivered a strong quarter with Microsoft Cloud revenue of $42.4 billion, up 20% (up 22% in constant currency) year-over-year driven by continued demand for our differentiated offerings,” said Amy Hood, executive vice president and chief financial officer of Microsoft.

Microsoft has leaned more heavily than most on both cloud and AI. Under Nadella, the company has converted most of its platforms into cloud-based offerings, and the company was quick to partner with OpenAI in an effort to bring generative AI to its portfolio of services and products.

As its third quarter results bear out, Microsoft’s cloud and AI focus is clearly paying off.