Microsoft Corporation (MSFT) Announced Q3 2026 Earnings on April 29, 2026, Reporting "revenue was $82.9 billion".

During the third quarter, Microsoft Corporation reported that "revenue was $82.9 billion, up 18%" for the quarter.

Operating income "increased 20%" and "earnings per share was $4.27" for the quarter.

Chief Financial Officer Amy Hood noted that "our AI business annual revenue run rate surpassed $37 billion this quarter, growing 123% year-over-year". The Microsoft Cloud segment "exceeded $54 billion in revenue" for the quarter.

Company "gross margin percentage was 68% down year-over-year," which Hood stated was "driven by continued investment in AI infrastructure and growing AI product usage".Chief Executive Officer Satya Nadella stated the company is executing against two priorities, which are building "cloud and AI infrastructure" and "building high-value agentic systems across core domains such as productivity, coding and security". Microsoft "added another gigawatt of capacity this quarter" and "announced new data center investments across 4 continents". Microsoft 365 Copilot paid seats are "now over 20 million," and Accenture "now has over 740,000 seats". Additionally, the company announced a "business model transition in GitHub Copilot that will align pricing with usage and value" starting June 1.For the fourth quarter, Microsoft expects total company revenue to be "between USD 86.7 billion and USD 87.8 billion". In the Intelligent Cloud segment, the company expects revenue of "USD 37.95 billion to USD 38.25 billion," with Azure Q4 revenue growth expected to be "between 39% and 40% in constant currency". Hood noted that they "expect CapEx spend to increase to over $40 billion" for the fourth quarter.

For calendar year 2026, Microsoft expects to invest "roughly $190 billion in capital expenditures". Management expects "full year FY '26 operating margins to be up about 1 point year-over-year".