Analysts had been expecting to see the company report earnings of 55 cents per share, but actual earnings came in well above at 62 cents per share.
It was a really good quarter for Microsoft, but revenues did not rise enough to stay above Apple's (AAPL) recent quarterly numbers. Microsoft had revenues of $16.2 billion during the quarter, up from $16 billion during its fourth quarter. Apple reported earlier this month it had revenues of $20.34 billion.
This marks the first time in a decade and a half that Apple was able to report higher revenues than its rival.
What separates the two companies the most is that Apple has revenue coming in mostly from consumer hardware products, while Microsoft continues to earn most of its revenues from licensing deals and software sales to consumers.
Apple has been seeing steady growth in products such as the iPhone, iPad and iTouch, as well as growing sales of music and software. Micorsoft's major revenue streams continue to be Office and Windows.
Here is a chart from AppleInsider that illustrates revenue growth for the two companies over the past two years:
Apple's massive growth recently has definitely been impressive. Earlier this year it overtook Microsoft in terms of total market share, and now that it has surpassed the company in terms of revenues, there is just one hurdle left. Profit.
Microsoft is still ahead in the profit category, reporting $5.4 billion in first quarter profit. Apple reported $4.3 billion for the current quarter, so it still has a way to go before it overtakes Microsoft in this area.
Will this holiday season be enough to push Apple ahead? It very well could be. Microsoft will be selling a lot of XBox's, but Apple is going to be selling quite a few iPads, and iTouches this year. Can they sell enough to overtake Microsoft in profit for the quarter? It could be close... what are your predictions?