The results announced Tuesday marked Yahoo's first quarterly earnings increase since the first three months of 2008.
The Sunnyvale-based company said it made $141.4 million, or 10 cents per share, in the three months ending in June. That was up from income of $131.2 million, or 9 cents per share, last year.
Analysts surveyed by Thomson Reuters had predicted Yahoo would earn 8 cents per share.
"Even in this challenging economic environment, Yahoo had a solid quarter, reflecting the strength of our offerings for our users and advertisers," Yahoo Chief Financial Officer Tim Morse said in a statement.
Revenue for the period slid 13 percent to $1.57 billion.
That's the biggest decline so far in a slump that has seen Yahoo fall further behind Internet search leader Google Inc. in the online ad market.
The results came as Yahoo unveiled a new home page (below)in a long-promised makeover meant to make it easier to see what's happening at the Internet's other hot spots.
The idea is to help Yahoo recapture some of the buzz it has lost to increasingly popular online hangouts like Facebook, MySpace and Twitter.
Shares in Yahoo fell 65 cents, or 3.9 percent, to $16.10 in extended trading Tuesday after the release of the quarterly results.
Earlier, it closed down 26 cents, or 1.5 percent, at $16.75.