Net income in the quarter through December climbed to $6.56 billion, or 78 cents per share, from $6.38 billion, or 76 cents per share, a year ago. Revenue rose 14 percent to $24.52 billion. Analysts polled by FactSet expected earnings of 68 cents per share on revenue of $23.67 billion.
Outgoing CEO Steve Ballmer said the company had a "great holiday quarter." Surface revenue rose to $893 million in the quarter, up from $400 million in the three months through September.
The company appeared to withstand a steep decline in personal computer sales, which research firm Gartner pegged at a 7 percent decline worldwide in the December quarter and IDC put at 6 percent. Microsoft said revenue from its flagship operating system fell just 3 percent, reflecting a 12 percent gain from PCs that its partners sold to enterprises. Windows revenue from consumer purchases fell.
Overall, revenue from its devices and consumer segment grew 13 percent to $11.91 billion, while revenue from commercial products like server operating systems and cloud computing services grew 10 percent to $12.67 billion. Shares rose $1.66, or 4.6 percent, to $37.74 in after-hours trading Thursday following the release of the results. Earlier, the stock closed the regular session up 15 cents at $36.08.