Microsoft has trounced earnings estimates on strong cloud and PC results, in what CEO Satya Nadella called “a second wave of digital transformation.”

Just a day after Wedbush raised its Microsoft target price, the company smashed expectations with its Q2 earnings. In particular, cloud performance and PC sales helped propel results.

The company reported revenue of $43.1 billion, an increase of 17% and handily beating analysts’ estimates of $40.2 billion. Net income was $15.5 billion, an increase of 33%.

The company’s Intelligent Cloud business accounted for $14.6 billion, a 23% increase. Similarly, the More Personal Computing division accounted for $15.1 billion, an increase of 14%.

“What we have witnessed over the past year is the dawn of a second wave of digital transformation sweeping every company and every industry,” said Satya Nadella, chief executive officer of Microsoft. “Building their own digital capability is the new currency driving every organization’s resilience and growth. Microsoft is powering this shift with the world’s largest and most comprehensive cloud platform.”

“Accelerating demand for our differentiated offerings drove commercial cloud revenue to $16.7 billion, up 34% year over year,” said Amy Hood, executive vice president and chief financial officer of Microsoft. “We continue to benefit from our investments in strategic, high-growth areas.”