The company as a whole announced revenue of $14.5bn for the quarter to the end of March, up 6% year on year, which Microsoft said was bolstered by the success of its new operating system Windows 7.
Microsoft's online services division, which includes its advertising sales operation, lost $713m in the same period, 73.5% more than it did in 2009.
Revenue at the online services division was $566m, up 11.6% from $507 in the first three months of 2009.
Windows revenue was up 28%, compared with the same quarter a year earlier, driven by strong demand for Windows 7. More than 10% of all PCs worldwide run Windows 7, making Windows 7 by far the fastest-selling operating system in history.
There was also strong growth in Bing search, Xbox LIVE and the company's emerging cloud services.
Peter Klein, chief financial officer at Microsoft, said: "Our record third-quarter revenue along with continued rigour on cost management, resulted in exceptional EPS growth."
Microsoft spent $3.2bn on sales and marketing in the three months to the end of March, 7.4%, more than it did in the same period in 2009.
Last month, Microsoft launched a high-profile TV campaign in the UK to support its search engine Bing, which includes sponsorship of The Simpsons on Channel 4.
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