Microsoft (MSFT) announced third-quarter fiscal 2026 revenues of $82.9 billion, an 18% increase year-over-year. Cloud revenues rose by 29% to $54.5 billion, while the company’s commercial remaining performance obligation skyrocketed by 99% to $627 billion. Diluted earnings per share increased by 23% to $4.27.
Looking ahead to the fourth quarter, Microsoft estimates revenues between $86.7 billion and $87.8 billion, forecasting Azure cloud growth at 39% to 40% in constant currency. The company projects capital expenditures over $40 billion for Q4 and $190 billion for the calendar year, driven by rising infrastructure investments amid tightening capacity.
Despite strong performance, shares of MSFT have declined by 17.2% in the past six months, amidst intensified competition from companies like Amazon Web Services and Google Cloud. While the business remains fundamentally strong, analysts advise holding existing positions due to narrowing margins and ongoing capital expenditures.
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