Here’s Why Microsoft’s Share Price Is Soaring

July 19, 2016, 8:39 PM UTC
Microsoft CEO Satya Nadella In India At Microsoft India Programme
NEW DELHI, INDIA - MAY 30: Satya Nadella, CEO of Microsoft Corporation, during the Microsoft India event Tech for Good, Ideas for India A conversation with young achievers, students, developers and entrepreneurs on May 30, 2016 in New Delhi, India. The India-born CEO, who is on his third visit to his home country since taking over as Microsoft head in February 2014, met Prime Minister Narendra Modi and other ministers to discuss issues pertaining to the IT sector and enhancing partnership for initiatives like Digital India. (Photo by Virendra Singh Gosain/Hindustan Times via Getty Images)
Photograph by Virendra Singh Gosain — Hindustan Times via Getty Images

Microsoft (MSFT) reported higher quarterly adjusted revenue, driven mainly by growth in the company’s cloud business.

The company’s shares jumped 3.5% to $54.91 in extended trading on Tuesday.

Revenue in the cloud business, which includes the Azure cloud platform as well as products related to server software, rose 7% to $6.7 billion.

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Under the leadership of Satya Nadella, the software behemoth has focused on the building the company’s expertise in cloud-based services amid slowing PC sales.

Nadella, who took the helm in early 2014, oversaw the company’s largest-ever deal last month when it acquired LinkedIn (LNKD) for $26.2 billion.

For more about Microsoft’s multi-billion dollar purchase of LinkedIn, watch:

The company posted net income of $3.12 billion, or 39 cents per share, for the fourth quarter ended June 30, compared with a loss of $3.2 billion, or 40 cents per share, a year earlier.

Adjusted revenue rose to $22.6 billion from $22.18 billion.