TLDR
Microsoft Stock Jumps 3.43% After Earnings as Revenue Climbs 18% to $82.9 Billion
Azure Growth Hits 40% as Microsoft Shares Rally to $549.20 After Quarterly Results
Microsoft Earnings Beat Expectations as Net Income Rises 23% to $31.8 Billion
Microsoft AI Revenue Run Rate Surpasses $37 Billion, Rising 123% Year Over Year
Microsoft Cloud Revenue Reaches $54.5 Billion as Commercial Backlog Jumps 99%
Microsoft (MSFT) shares rallied 3.43% in after-hours trading to $549.20 following its third-quarter fiscal 2026 earnings report. The stock gained $18.19 after closing at $531.01, down 0.06% during the regular session. Strong revenue growth, rising cloud demand, and accelerating Azure sales supported the post-market advance.
Microsoft Corporation, MSFT
Microsoft Revenue and Earnings Rise as Quarterly Results Exceed Expectations
Microsoft reported revenue of $82.9 billion for the quarter ended March 31, 2026, representing an 18% year-over-year increase. Revenue growth reached 15% after adjusting for currency movements, reflecting continued demand across its major business segments. Meanwhile, operating income climbed 20% to $38.4 billion, while adjusted currency growth reached 16%.
Net income increased 23% to $31.8 billion on a generally accepted accounting principles (GAAP) basis. Additionally, diluted earnings per share rose 23% to $4.27, compared with $3.46 in the corresponding quarter last year. Microsoft also reported non-GAAP earnings growth of 21%, excluding the impact of its OpenAI investments.
The results exceeded management’s expectations for revenue, operating income, and earnings per share. Non-GAAP net income reached $31.79 billion, compared with $26.41 billion a year earlier. Similarly, adjusted earnings per share increased to $4.27 from $3.54, demonstrating stronger profitability across the reporting period.
Azure Growth Hits 40% as Microsoft Cloud Revenue Reaches $54.5 Billion
Microsoft Cloud remained a major contributor to quarterly performance, generating $54.5 billion in revenue. The figure increased 29% year over year, or 25% after currency adjustments, as businesses continued adopting cloud services. Commercial remaining performance obligations also surged 99% to $627 billion, indicating substantial contracted demand for future services.
Azure and other cloud services revenue increased 40% year over year, or 39% in constant currency. The growth highlighted Microsoft’s expanding cloud business and its role in meeting demand for artificial intelligence infrastructure. Furthermore, the Intelligent Cloud segment generated $34.7 billion in revenue, marking a 30% annual increase.
Productivity and Business Processes generated $35 billion in revenue, up 17% from the previous year. Microsoft 365 Commercial cloud revenue increased 19%, while its consumer cloud business recorded 33% growth. LinkedIn revenue climbed 12%, and Dynamics 365 revenue advanced 22%, extending growth across Microsoft’s productivity and business software portfolio.
AI Revenue Expands as Microsoft Reports Mixed Results Across Other Businesses
Microsoft’s artificial intelligence business surpassed an annual revenue run rate of $37 billion, increasing 123% year over year. The company continues expanding its infrastructure and software offerings to support growing demand for AI-powered business applications. These developments complement Azure’s growth and strengthen Microsoft’s position across enterprise cloud services.
More Personal Computing recorded $13.2 billion in revenue, representing a 1% annual decline. Windows OEM and Devices revenue fell 2%, while Xbox content and services revenue decreased 5% during the quarter. In contrast, search advertising revenue excluding traffic acquisition costs increased 12%, providing some support within the segment.
Microsoft returned $10.2 billion to shareholders through dividends and share repurchases during the third quarter. The company plans to provide forward-looking guidance during its earnings conference call and webcast. Meanwhile, the after-hours share price of $549.20 reflected a positive market response to stronger earnings and sustained cloud growth.
The post Microsoft (MSFT) Stock: Rallies After Q3 Earnings as Azure Growth Hits 40% and Revenue Climbs 18% appeared first on Blockonomi .
