Microsoft Quarterly Financial Update
For the fiscal third quarter of 2026, Microsoft (NASDAQ: MSFT) reported total revenue of $82.9 billion, an 18% increase year-over-year. Operating income rose 20% to $38.4 billion, with earnings per share growing 23% to $4.27. Despite seemingly strong results, Azure’s growth has stagnated, reporting a constant-currency increase of only 39% for three consecutive quarters, while competitors like Alphabet’s Google Cloud and Amazon’s AWS saw significant accelerations in growth, recording 63% and 28% respectively in Q1 2026.
Microsoft’s commercial remaining performance obligations (RPO) climbed 99% year-over-year to $627 billion, but 45% of this figure is tied to OpenAI. Excluding OpenAI, commercial RPO grew just 26% and bookings increased only 7%. The company is set to spend approximately $190 billion in capital expenditures for calendar 2026, significantly up from $64.5 billion in 2025.
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