Microsoft Corporation earnings overview

MSFT FY2026 Q3 · Calendar Q2 2026

Microsoft Corporation

Microsoft's Q3 FY2026 results crystallize the tension between AI monetization and AI investment. Revenue of $82.9B beat estimates by 1.8%, AI annual revenue run-rate surpassed $37B (up 123% YoY), and Microsoft 365 Copilot topped 20M paid seats with 250% YoY growth. Yet the market initially sold off 4.9% on capex guidance exceeding $40B per quarter and $190B for FY2026, before recovering 10.4% as investors digested the strength of AI revenue growth. The central question remains whether Azure revenue can scale fast enough to justify the accelerating capital deployment.