Microsoft’s Q3 revenue rose 18% YoY to $82.89B, driving a 4% gain amid broader tech sector declines.
Microsoft shares climbed 4% to $424.65 in midday trading, defying a 1% decline in the NASDAQ 100. The rally followed Q3 revenue of $82.89B, up 18% YoY, with Azure growth at 40% and AI revenue run rate hitting $37B, a 123% YoY increase.
The NASDAQ 100 fell 1% intraday, with selling pressure concentrated in high-beta tech stocks that led the 2026 rally. Microsoft, down 15% YTD compared to the NASDAQ 100’s 17% gain, emerged as a rotation target amid profit-taking in semiconductors and cryptocurrencies.
The divergence highlights Microsoft’s resilience as investors shift focus to undervalued mega-cap tech names. The stock’s outperformance contrasts with broader market weakness, signaling potential sector realignment.