VMware Inc. announced a new stock buyback plan as it reported fiscal first-quarter earnings that exceeded analysts' expectations.

The company said its board approved the repurchase of up to $1.5 billion of its Class A common stock through the fiscal year ending Jan. 29, 2021.

In the quarter ended May 3, VMware's non-GAAP EPS increased year over year to $1.32 from $1.26, beating the S&P Global Market Intelligence consensus normalized EPS estimate of $1.28.

Non-GAAP net income totaled $553 million, up from $516 million in the prior-year period.

On a GAAP basis, net income declined 46.4% from the prior-year period to $505 million, or $1.21 per share, from $942 million, or $2.29 per share.

VMware's GAAP net income in the quarter included an unrealized gain of $132 million on an investment in Pivotal Software Inc.

Total revenue climbed 12.8% on an annual basis to $2.27 billion from $2.01 billion. In the fiscal first quarter, VMware signed partnerships with Amazon Web Services Inc., Dell Technologies Inc. and Microsoft Corp. on cloud infrastructure technology.

In reporting its latest quarterly results, VMware maintained its full-year guidance for fiscal 2020, including projected revenue of $10.03 billion.