Thanks largely to stronger-than-expected global PC sales, Microsoft reported $6.48 billion in profit for the holiday quarter on sales of $16.37 billion, beating analyst estimates. Chief Financial Officer Chris Liddell raised the company's sales and profit targets for the next two quarters — a sign that unlike Wall Street, Microsoft expects a comfortable start to 2008, despite signs that U.S. businesses might slow their spending. “We've just gone through our mid-year reviews where we go country by country and segment by segment, across the world,” Liddell said. “The next six months we feel very good about.”

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