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Microsoft's FY26 Q3 Results Cloud and AI as
the Pillars of Success
the Pillars
The third quarter of fiscal year 2026 ended with outstanding results for Microsoft. Compared to the same quarter last year (FY25 Q3), key figures rose by 18 to 25 percent. The cloud business performed particularly well: Microsoft Cloud revenue recorded even higher growth, underscoring the importance of this segment to the company’s success. The AI segment is also continuing to gain relevance – Microsoft even refers to it as “a new era.”
FY26 Q3: Key Financial Figures
The technology group generated revenue of $82.9 billion in the third quarter of its 2026 fiscal year, representing 18% growth. Operating income rose to $38.4 billion, up 20% from the prior-year period. Net profit rose to $31.8 billion, an increase of 23%. Earnings per share reached $4.27, also representing a 23% increase. Microsoft Cloud revenue for this quarter was $54.5 billion, a 29% increase compared to the same quarter last year.
Overview: Here are the Results for FY26 Q3 compared to FY25 Q3
| Revenue (total) | Operating Income | Net Profit | Earnings per Share | Microsoft Cloud Revenue | |
|---|---|---|---|---|---|
| FY26 Q3 | $82.9 billion | $38.4 billion | $31.8 billion | $4.27 | $54.5 billion |
| FY25 Q3 | $70.1 billion | $32 billion | $25.8 billion | $3.46 | $42.4 billion |
| Compared to FY25 Q3 | + 18% | + 20% | + 23% | + 23% | + 29% |
Microsoft CEO Satya Nadella emphasized that the company continues to make targeted investments in cloud and AI infrastructure to help businesses maximize their outcomes in the era of agent-based computing systems. He particularly highlighted the AI business, whose annual revenue run rate has now surpassed $37 billion. This represents a 123 percent increase year-over-year. Microsoft even believes that the IT world is currently on the cusp of an era in which AI agents will play a pivotal role. For this reason, their further development is essential for the group.
CFO Amy Hood also expressed satisfaction with the business performance. The results exceeded expectations for revenue, operating income, and earnings per share. The performance underscores the strong execution and growing demand for the Microsoft Cloud.
The Azure Cloud Platform is a Key Contributor to Growth
Azure remained one of Microsoft’s key growth drivers in the third quarter of fiscal year 2026. The cloud platform posted a 39% year-over-year revenue increase, benefiting in particular from strong demand for AI and data analytics services.
Microsoft Fabric and GitHub Copilot: Successes in Other Areas
Microsoft continues to experience strong growth in its data and developer platforms. The number of paying Fabric customers has now risen to 35,000, representing a 60% increase year-over-year.
Momentum is also continuing in the software development division. Due to the increasing use of AI-powered, agent-based software development, GitHub usage is seeing unprecedented growth. To meet the high demand, Microsoft is continuously investing in the expansion of its infrastructure and services.
This trend is particularly evident with GitHub Copilot: Nearly 140,000 organizations are now using the solution. The number of enterprise customers has nearly tripled year-over-year.
Cloud and AI remain the Focus
Microsoft delivered another very strong quarter in FY26 Q3, with double-digit revenue and profit growth. Azure, cloud services, and AI offerings proved to be the main pillars of business growth. While the traditional PC, hardware, and gaming business remained weaker, these areas accounted for a significant portion of the growth and supported the group’s strong performance.
