Microsoft’s Fiscal Performance in Q3 2026
Microsoft (NASDAQ: MSFT) reported a strong fiscal Q3 2026, revealing an 18% year-over-year increase in revenue and a 20% rise in operating income. The company’s cloud computing division, Azure, experienced significant growth, with revenue up 40% primarily driven by AI spending. Additionally, Microsoft’s AI-related business outside of cloud services reported a remarkable 123% year-over-year growth, bringing its annual run rate to $37 billion.
Despite solid financial performance, Microsoft’s stock has declined approximately 15% in 2026, leading analysts to suggest it is undervalued. The company’s operating price-to-earnings ratio is currently around 21, the lowest seen in a decade, indicating potential for a strong recovery as market awareness increases.
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