The company's financial year runs from 1 July to 30 June.
“It was a record fiscal year for Microsoft, a result of our deep partnerships with leading companies in every industry,” said Microsoft chief executive Satya Nadella in a statement on Thursday.
"Every day we work alongside our customers to help them build their own digital capability - innovating with them, creating new businesses with them, and earning their trust.
Commercial cloud revenue increased by 39% year-on-year to US$39 billion, which Amy Hood, executive vice president and chief financial officer of Microsoft, described as the company's strongest commercial quarter.
Profits for the year were put at US$13.2 billion for the quarter, 49% more than the corresponding quarter a year earlier, and US$39.2 billion for the financial year, a rise of 137% over the previous financial year.
About the only sector that showed a decrease was gaming, which saw revenue fall by 10%, with Xbox software and services revenue down by 3%.
Windows OEM revenue rose by 9%. Both gaming revenue and Windows OEM revenue are bundled together under the More Personal Computing category which brought in US$11.3 billion in revenue and also includes Surface products, search advertising revenue and Windows Commercial products and cloud services revenue.