Microsoft Corporation (MSFT) reported Q3 fiscal 2026 revenues of $82.9 billion, an increase of 18% year-over-year, with operating income rising 20% to $38.4 billion.
Net income grew 23% to $31.8 billion, reflecting a diluted earnings per share of $4.27. Key drivers included the Intelligent Cloud segment, which reported revenues of $34.7 billion (up 30%) and Azure growing 40%.
Looking ahead, Microsoft expects fourth-quarter revenues to range between $86.7 billion and $87.8 billion, indicating 13-15% growth. However, anticipated capital expenditures are forecasted to exceed $40 billion, primarily due to rising component costs. Microsoft is also seeing significant growth in its AI business, which surpassed a $37 billion annual revenue run rate, increasing 123% year-over-year.
MSFT shares have returned 13% in the last three months, lagging behind the Zacks Computer – Software industry’s 14.4% growth and the broader Technology sector’s 24.1% increase, due to investor caution over capital expenditures.
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