Microsoft's Financial Figures show warnings about Redmond Future Earnings.

Big jumps in sales of its Surface tablets, cloud computing software and Lumia smartphones drove Microsoft's quarterly revenue above expectations, as CEO Satya Nadella continues to steer toward the mobile gadget market and shift Microsoft away from its traditional focus on the PC.

Revenues from cloud computing products, housed in Microsoft's data centers, more than doubled. The division is now on track to bring in $5.5 billion in sales this year. Surface revenue spiked 24 percent to over $1 billion. Xbox — which sold 6.6 million consoles in the holiday quarter. 

And while profit dropped on big charges for layoffs, other restructuring efforts and integrating the Nokia phone business, Microsoft's earnings matched Wall Street estimates.

"The PC isn't dead, but people are much more mobile and they don't spend all their time on their PC," said Anthony Clendenen, a tech expert at En Pointe, a California firm that helps businesses buy and install commercial software from Microsoft and other companies.

All eyes will be on the launch later this year of Windows 10, the next version of Microsoft's flagship operating system. Designed to be equally familiar and easy to use on PCS and mobile gadgets, Nadella is hoping Windows 10 will capture both consumers and the developers who create apps for phones and tablets.

( AP )

Read More: 

Microsoft Launch Consumer Preview of Windows 10

Microsoft`s new " Spartan " browser