Microsoft Reports Strong Quarter, Driven By Windows 7 Demand

Microsoft has just posted the results of its fiscal 2010 second-quarter, which ended December 31. The company reported $19.02 billion in revenue and diluted earnings of $0.74 per share, beating analyst expectations of revenues of $17.8 billion and $0.59 per share. Operating income was $8.51 billion, and net income was $6.66 billion.

Microsoft says that it sold over 60 million licenses of Windows 7 through the second quarter. Sales were driven by growth in the consumer PC market, which is up over 20% year over year.

The Online services Division reported a 5% year over year decline. Online advertising revenue is down 2%. Microsoft notes that Bing’s marketshare has been up for 7 consecutive months, and that while there is growth in search revenue, display revenue has been hurt by declines in international rates.