**Microsoft Reports Q3 Results Amid Slower Cloud Growth**
Microsoft (NASDAQ: MSFT) announced its fiscal third-quarter results for 2026, revealing an 18% year-over-year revenue increase and a 20% rise in operating income. While the company’s artificial intelligence segment reached a $37 billion annual run rate—up 123%—its cloud computing business, Azure, saw only a modest growth rate of 39% year-over-year, up just 1 percentage point from previous quarters. In contrast, Amazon Web Services (AWS) reported a significant 28% growth, and Google’s Cloud division surged by 63% in the same period.
Despite a substantial $627 billion in commercial remaining performance obligations for Microsoft, investment in cloud services is projected at about $190 billion for 2026, reflecting pressure to enhance Azure’s competitive stance. Concerns linger about the long-term viability of Microsoft’s productivity software, especially with increasing competition from Google and the potential disruption posed by AI on traditional licensing models.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
