Microsoft has revealed its profits for the last quarter hit $5.87bn, that's 30 percent up on last year.
The news comes just days after Apple also revealed it had hit record profits in the three months since March.
Microsoft also revealed its annual revenue was a record $69.94bn, while net income rose by 23 percent to $23.15bn. The tech giant said sales of its gaming console, the Xbox 360, and its Office 2010 productivity suite were partly responsible for the surge in revenue.
However, Microsoft's online service unit, which oversees its Bing search engine and related technology, recorded losses of $728m as it attempted to complete with rival Google. Furthermore, sales of Windows products have also slowed over the quarter. However, the tech company is expected to release the next iteration of the operating system, Windows 8, next year.