Microsoft (MSFT) Q3 earnings report 2026
Microsoft CEO Satya Nadella speaks through the Microsoft AI Tour occasion in Munich, Germany, on Feb. 25, 2026.
Sven Hoppe | Picture Alliance | Getty Images
Microsoft shares slipped 2% on Wednesday after the software program maker reported extra strong fiscal third-quarter outcomes than analysts had anticipated.
Here’s how the corporate did as compared with LSEG consensus:
- Earnings per share: $4.27 adjusted vs. $4.06 anticipated
- Revenue: $82.89 billion vs. $81.39 billion anticipated
Microsoft’s income grew 18% yr over yr within the quarter, which ended on March 31, in response to a statement.
Net revenue of $31.78 billion, or $4.27 per share, was up from $25.82 billion, or $3.46 per share, in the identical quarter a yr earlier. Adjusted earnings exclude a $14 million lower in internet revenue from Microsoft’s OpenAI investments.
Microsoft reported $31.9 billion in quarterly capital expenditures and finance leases, up 49% and fewer than the $34.9 billion consensus amongst analysts polled by Visible Alpha.
Revenue from Microsoft’s Azure and different cloud companies emerged 40%. Analysts polled by StreetAccount and CNBC had anticipated 39.3% and 38.8%, respectively.
The full Intelligent Cloud phase containing Azure, server merchandise and GitHub and Nuance cloud companies posted $34.68 billion in income. The sum got here in increased than the $34.27 billion consensus amongst analysts surveyed by StreetAccount.
Microsoft’s Productivity and Business Processes phase, which incorporates Office productiveness software program, LinkedIn and Dynamics enterprise software program, totaled $35.01 billion in income. The determine was up about 17% and above StreetAccount’s $34.43 billion consensus.
During the quarter, essentially the most senior Office software program chief, Rajesh Jha, introduced plans to retire, as did gaming chief Phil Spencer.
As of Wednesday’s shut, Microsoft inventory was down 12% thus far in 2026, following its worst quarterly efficiency since 2008. That’s due partly to broader market concern that AI will eat software program, and fears particular to the corporate that its hefty AI investments will not produce the specified outcomes.
Executives will focus on the outcomes with analysts and supply steerage on a convention name beginning at 5:30 pm ET.
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