Microsoft Reports Fiscal Q3 Results
On October 24, 2023, Microsoft (NASDAQ: MSFT) reported its fiscal Q3 earnings, revealing total revenue of $82.89 billion, an 18% year-over-year increase. The company’s adjusted earnings per share rose 21% to $4.27, exceeding analyst expectations of $81.39 billion in revenue and $4.06 in EPS.
Microsoft’s cloud computing division, Azure, saw a remarkable 40% revenue surge, marking its 11th consecutive quarter of over 30% growth. Annual recurring revenue for its AI services skyrocketed 123%, contributing to future Azure commitments almost doubling to $627 billion. However, total bookings decreased 46% in constant currencies when factoring in OpenAI.
Despite strong operational results, Microsoft’s stock has stagnated, with minimal growth (approximately 1%) noted between April 2024 and April 2026. Looking forward, Microsoft guided for Q4 revenue between $86.7 billion and $87.8 billion, with continued expected Azure revenue growth of 39% to 40% in constant currencies.
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