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Microsoft's (NASDAQ:MSFT) FQ2 EPS of $0.60 was a penny better than consensus estimates of $0.59. Revenue of $19.02B was well ahead of consensus of $17.84B. Including deferred revenue, EPS was $0.74.

In after-hours trading, shares of MSFT were up more than 3% as of 4:30 ET.

Highlights from Microsoft's FQ2 earnings release:

“Exceptional demand for Windows 7 led to the positive top-line growth for the company,” said CFO Peter Klein. “Our continuing commitment to managing costs allowed us to drive earnings performance ahead of the revenue growth.

Windows 7 and Windows Server 2008 R2 launched globally on October 22 as anticipated. Through the second quarter, Microsoft has sold over 60 million Windows 7 licenses making it the fastest selling operating system in history.

“This is a record quarter for Windows units,” said COO Kevin Turner. “We are thrilled by the consumer reception to Windows 7 and by business enthusiasm to adopt Windows 7.”

Source: Microsoft Beats by a Penny, Strong Revenues