This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Shares of tech giant Microsoft (NASDAQ: MSFT) spiked this week after the company reported better-than-expected revenue and earnings in its fiscal third quarter. The company's Azure cloud computing service and Microsoft 365 products are firing on all cylinders, which was welcome news to investors, many of whom have lost their appetite for some tech stocks as of late.

With the company's impressive quarterly results, Microsoft stock was up by 9.5% this week, according to data compiled by S&P Global Market Intelligence.

Cloud sales are spurring Microsoft's growth

Microsoft's sales were up 13% from the year-ago quarter to $70 billion, easily beating Wall Street's consensus estimate of $68.4 billion for the quarter. The company's earnings of $3.46 per share also topped estimates of $3.22, representing an 18% jump year over year.

One of the biggest standouts from the quarter was Microsoft's "Azure and other cloud services" revenue, which surged 33% from the year-ago quarter.

Microsoft CFO Amy Hood said on the earnings call:

We continue to see strong demand for our cloud and AI offerings, as they help customers drive productivity, increase efficiencies, and grow their businesses. And, again this quarter, revenue from our AI business was above expectations.

The company's Microsoft 365 software sales also experienced impressive growth, with its commercial sales rising 11% and consumer sales increasing by 12%.

What management is expecting in the current quarter

Microsoft said on the earnings call that it expects Azure revenue to continue growing in the fourth quarter, with sales expected to increase by 34%. And based on estimated revenue growth from each of Microsoft's segments, total revenue for the current quarter should increase by 14% from the year-ago quarter.

This strong outlook put many investors' fears to rest about whether the company could be impacted by a potential economic slowdown. Microsoft CEO Satya Nadella answered a question about how the company might handle a recession, saying:

... I think if you buy into the argument that software is the most malleable resource we have to fight any type of inflationary pressure or any type of growth pressure where you need to do more with less, I think we can be super helpful in that.

These positive comments and the company's strong third-quarter results have reassured Microsoft investors that the company is on the right track and may be able to weather a potential economic slump, should one occur.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.