Client division sales were "surprisingly ahead of where we thought they would come in," said Sid Parakh, an analyst at McAdams Wright Ragen.
Business division revenue, which includes sales of Office 2007, rose 34 percent to $4.83 billion.
Microsoft Chief Financial Officer Chris Liddell said the "excellent quarter" was due to better-than-expected sales of Vista and Office. Liddell said Vista beat internal forecasts by $300 million to $400 million, and Office 2007 sales were $200 million better than expected.