Microsoft has earned better than expected earnings of 5.2 billion dollars.
Profits at the technology giant were up 17 percent from the same period last year.
In a statement, head Steve Ballmer said that the company's devices and services transformation is progressing, adding that Microsoft is launching a 'wide range' of new products in the coming quarter.
According to the BBC, the company has released several new products this quarter, including an update to Windows 8, and recently bought the mobile phone unit of struggling Nokia.
Shares rose six percent in after hours trading on the strong results.
For the first time, Microsoft also announced sales of its tablet computer, Surface.
It said revenues from Surface 'grew to 400 million dollars with sequential growth in revenue and units sold over the prior quarter', the report said.
Last quarter, the company was forced to take an embarrassing write down of 900 million dollars after sluggish sales.