Key Points
Microsoft (NASDAQ: MSFT) reported that its AI annual recurring revenue increased by 123% year-over-year to over $37 billion for the fiscal Q3 2026, which ended March 31. This growth is attributed to its AI assistant Copilot, integrated into products such as Microsoft 365, Windows, and Azure, the cloud computing platform experiencing a 40% growth rate.
Overall, Microsoft’s revenue grew by 8% in fiscal Q3. The company, which is well-positioned in the AI sector, faces a valuation metric (price-to-operating-cash-flow ratio) indicating it hasn’t been this undervalued since before the COVID-19 pandemic.
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