Microsoft (MSFT) reported third-quarter fiscal 2026 earnings of $4.27 per share, a 21% year-over-year increase, surpassing expectations by 4.91%. Revenues reached $82.9 billion, reflecting an 18% annual growth and beating consensus estimates by 1.83%. Strong performance was evident in Microsoft Cloud, with revenues of $54.5 billion, up 29% year-over-year.
As of March 31, 2026, Microsoft’s commercial remaining performance obligation stood at $627 billion, a 99% increase from the previous year, signaling robust revenue visibility. The company’s AI segment achieved an annual revenue run rate of $37 billion, growing 123% year-over-year. Despite strong earnings, Microsoft’s stock fell in after-hours trading due to projected capital expenditures exceeding $40 billion for the fiscal fourth quarter and approximately $190 billion for the calendar year 2026.
For the upcoming fourth quarter, Microsoft anticipates total revenues between $86.7 billion and $87.8 billion, expecting growth of 13% to 15%. The productivity segment’s revenue is forecasted between $37.0 billion and $37.3 billion, highlighting an anticipated 12% to 13% growth, while the Intelligent Cloud segment is projected to generate revenues of about $38 billion, suggesting growth of 27% to 28%.
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