Red Hat Q3 tops estimates, subscription revenue up 16 percent

Red Hat CEO Jim Whitehurst credited the company's investments in technologies and partnerships -- such as its pact with Microsoft and its Azure Cloud -- for the better-than-expected results.

Red Hat reported solid fiscal third quarter financial results Thursday after the bell.

The open source software company reported a net income of $47 million, or 25 cents per share (statement).

Non-GAAP earnings were 48 cents per share on a revenue of $524 million, up 15 percent year-over-year.

Third quarter subscription revenue grew 16 percent year-over-year to $457 million.

Wall Street was looking for earnings of 46 cents per share with $521 million in revenue.

Red Hat CEO Jim Whitehurst credited the company's investments in technologies and partnerships -- such as its pact with Microsoft and its Azure Cloud -- for the better-than-expected results.

The company also raised its fiscal 2016 revenue outlook to between $2.044 billion to $2.048 billion, above the previously forecasted range of $2.034 billion to $2.044 billion.