Microsoft Q3 2026 Earnings
Microsoft Corporation (NASDAQ: MSFT) reported a 4.6% decline in stock price on Thursday despite surpassing analyst expectations in its fiscal Q3 2026 earnings. The company earned $4.27 per share on sales of $82.9 billion, exceeding forecasts of $4.05 per share on $81.3 billion in sales. Sales increased by 18% year-over-year, with net profit rising 23% to $24.3 billion.
Significant growth came from Microsoft’s artificial intelligence division, which saw revenue more than double to $37 billion, now accounting for nearly half of total revenue. However, heavy investments in cloud and AI infrastructure led to a decline in free cash flow, dropping to $15.8 billion—down 22% from the previous year. Year-to-date, Microsoft has generated $47.4 billion in cash flow against $98 billion in net profit.
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