Microsoft just released better than expected Q1 earnings, posting first-quarter revenue of $16.2 billion, an 25% increase from the same period of the prior year. Analysts expected revenue to come in at $15.8 billion. Operating income, net income and diluted earnings per share for the quarter were $7.12 billion, $5.41 billion and $0.62 per share, which represented increases of 59%, 51% and 55%, respectively, when compared with the prior year period. Analysts were expecting diluted earnings per share of $0.55. Microsoft said that the company saw year-over-year growth across all business segments. Revenue from Office 2010 grew over 15% in its first full quarter in market. The entertainment division saw strong growth as Xbox 360 console sales increased by 38%. The biggest growth came from Windows, with revenue up 66% to $4.8 billion. Windows operating profits up 124% to $3.2 billion (from $1.5 billion last year) and Windows Azure subscriptions grew by 40%.
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