The software giant posted revenue for the quarter of $19.12 billion, with earnings per share of 74 cents, ahead of the Street at $17.84 billion and 59 cents. Revenues were up 14 percent from a year ago.
Net income rose to $6.66 billion, or 74cents per share from $4.17 billion during the same period last year.
Exceptional demand for Windows 7 led to the positive top-line growth for the company, Microsoft Chief Financial Officer Peter Klein said in a statement.
The company was widely seen to post strong numbers as reports indicated improving PC shipments in the past quarter.
Microsoft said revenue for its division that includes Windows rose to $6.9 billion from $4 billion in the period a year earlier. Profit for the division rose to $5.4 billion from $2.7 billion.
Revenue for the business division that includes Microsoft's Office software, however, fell to $4.7 billion from $4.9 billion.
Profit for the business division fell to $3.01 billion from $3.02 billion.
Shares of Microsoft rose in post-market trading, gaining 1.34 percent, or 30 cents to $29.55.