more to come Revenue of $82.89bn beat the $81.46bn consensus estimate, implying approximately 18% year-on-year growth from $70.06bn in Q3 FY2025 EPS of $4.27 exceeded the $4.03 estimate; operating income of $38.40bn cleared the $36.9bn forecast Azure and other cloud services…
more to come Revenue of $82.89bn beat the $81.46bn consensus estimate, implying approximately 18% year-on-year growth from $70.06bn in Q3 FY2025 EPS of $4.27 exceeded the $4.03 estimate; operating income of $38.40bn cleared the $36.9bn forecast Azure and other cloud services grew 39% in constant currency, beating management’s own 37-38% guidance and reversing a multi-quarter deceleration trend Total Cloud revenue of $54.5bn beat the $53.78bn estimate; Microsoft 365 Commercial Cloud grew 19%, Consumer Cloud grew 33% Capex including finance leases of $31.9bn came in approximately $3.4bn below the $35.29bn consensus estimate, easing free cash flow pressure concerns Dynamics 365 grew 22% and LinkedIn 12%; Xbox content and services fell 5% and Windows OEM and Devices declined 2% Microsoft announced a restructured OpenAI partnership on April 27, eliminating outbound revenue-share payments to OpenAI while retaining Azure priority and a non-exclusive model licence through 2032 The results arrive after Microsoft’s worst single-day market cap loss in its history following Q2 earnings, when $357bn was erased despite a headline revenue beat Microsoft delivered a broad earnings beat in its fiscal third quarter of 2026, posting revenue of $82.89bn against the $81.46bn consensus and EPS of $4.27 versus the $4.03 estimate, at the same time producing a significant undershoot on capital expenditure that analysts had flagged as the single most important number in the report. Capex including finance leases came in at $31.9bn, roughly $3.4bn below the $35.29bn estimate, providing the clearest signal yet that the company’s AI infrastructure buildout is moderating toward a more predictable pace after quarters of escalation that rattled investor confidence.
The Azure result is the second headline that matters. Azure and other cloud services grew 39% in constant currency, a point above the top of the 37-38% guidance range that management had set on the Q2 call in January. The beat…