Microsoft's Q3 Revenue Reaches $82.9 Billion, AI Becomes a Cash Printer with 123% Annual Growth
Microsoft today announced its fiscal year 2026 third quarter (ended March 31) financial results. The data shows that Microsoft's total revenue for the quarter reached $82.9 billion, a year-on-year increase of 18%; operating income was $38.4 billion, a year-on-year increase of 20%. In terms of net profit, it was $31.8 billion under GAAP, a year-on-year increase of 23%; and a year-on-year increase of 20% under non-GAAP, with a growth of 18% at constant currency.
Diluted earnings per share were $4.27, a year-on-year increase of 23% under GAAP and a year-on-year increase of 21% under non-GAAP, with a growth of 18% at constant currency. In addition, non-GAAP performance excludes the impact of investments in OpenAI.
Microsoft Chairman and CEO Satya Nadella said the company is focused on providing cloud and AI infrastructure and solutions to help businesses maximize value in the age of intelligent agent computing.
He specifically emphasized that Microsoft's AI business has exceeded $37 billion in annualized revenue, a surge of 123% year-on-year, becoming a key driver of the company's growth.
Looking at business segments, Microsoft's cloud business performed particularly well, with revenue reaching $54.5 billion for the quarter, a year-on-year increase of 29%, and a growth of 25% at constant currency; remaining performance obligations increased significantly by 99% year-on-year to $627 billion.
The Productivity and Business Processes segment generated $35 billion in revenue, a year-on-year increase of 17%, and a growth of 13% at constant currency.
Among them, Microsoft 365 commercial cloud revenue increased by 19% year-on-year, and consumer cloud revenue increased by 33%; LinkedIn revenue increased by 12%, and Dynamics 365 revenue increased by 22%, all sub-businesses maintained steady growth.
The Intelligent Cloud segment generated $34.7 billion in revenue, a year-on-year increase of 30%, and a growth of 28% at constant currency, with core Azure and other cloud services revenue increasing by 40% year-on-year, and a growth of 39% at constant currency, continuing its rapid growth momentum.
It is worth noting that the only segment that saw a decline was More Personal Computing, with revenue of $13.2 billion for the quarter, a year-on-year decrease of 1%.
Among them, Windows OEM and device revenue decreased by 2%, and Xbox content and services revenue decreased by 5%, but search advertising revenue excluding traffic acquisition costs still achieved a year-on-year increase of 12%.
In addition, Microsoft returned $10.2 billion to shareholders in the form of dividends and share repurchases during the quarter, demonstrating the company's commitment to shareholder returns.