Q3 26 EPS
$4.27
BEAT +4.40%
Est. $4.09
Q3 26 Revenue
$82.89B
BEAT +1.79%
Est. $81.43B
vs S&P Since Q3 26
+7.7%
BEATING MARKET
MSFT +15.7% vs S&P +8.0%
Market Reaction
Did MSFT Beat Earnings? Q3 2026 Results
Microsoft delivered a standout fiscal third quarter of 2026, posting earnings per share of $4.27 and beating the $4.07 consensus estimate by 4.90%, marking the fourth consecutive quarter the company has topped Wall Street's EPS expectations. Revenue … Read more Microsoft delivered a standout fiscal third quarter of 2026, posting earnings per share of $4.27 and beating the $4.07 consensus estimate by 4.90%, marking the fourth consecutive quarter the company has topped Wall Street's EPS expectations. Revenue climbed 18.3% year-over-year to $82.89 billion, edging past the $81.43 billion consensus by 1.79%, as the company's Intelligent Cloud segment proved the primary engine of growth, generating $34.68 billion in revenue, up 30%, with Azure and other cloud services expanding 40%. Microsoft's AI business crossed a $37.00 billion annualized revenue run rate, growing 123% year-over-year, underscoring deepening enterprise adoption of the company's platform, a trend evident even beyond its own results as customers across industries accelerate AI integration into core workflows. Commercial remaining performance obligations nearly doubled to $627.00 billion, signaling robust long-term demand. GAAP net income rose 23% to $31.78 billion, and while the company deferred specific forward guidance to its earnings call, the scale of its infrastructure commitment, with capital expenditures reaching $30.88 billion, signals continued aggressive investment ahead.
Key Takeaways
- • Azure and other cloud services revenue grew 40% (39% constant currency)
- • Microsoft Cloud revenue grew 29% to $54.5 billion
- • Microsoft 365 Consumer cloud revenue grew 33%
- • Microsoft 365 Commercial cloud revenue grew 19%
- • Dynamics 365 revenue grew 22%
- • Commercial remaining performance obligation increased 99% to $627 billion
- • AI business annual revenue run rate surpassed $37 billion, up 123% YoY
MSFT YoY Financials
Q3 2026 vs Q3 2025, source: SEC Filings
MSFT Revenue by Segment
With YoY comparisons, source: SEC Filings
“We are focused on delivering cloud and AI infrastructure and solutions that empower every business to eval-max their outcomes in the agentic computing era.”
— Satya Nadella, Q3 2026 Earnings Press Release
MSFT Earnings Trends
MSFT vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
MSFT EPS Trend
Earnings per share: estimate vs actual
MSFT Revenue Trend
Quarterly revenue: estimate vs actual
MSFT Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q4 26 BEAT FY | $4.24 | $4.74 | +11.80% | $90.01B | +2.71% |
| FY Full Year | $16.78 | $17.28 | +2.99% | $331.84B | +0.69% |
| Q3 26 BEAT | $4.09 | $4.27 | +4.40% | $82.89B | +1.79% |
| Q2 26 BEAT | $3.92 | $4.14 | +5.61% | $81.27B | +1.24% |
| Q1 26 BEAT | $3.66 | $4.13 | +12.84% | $77.67B | +3.03% |
| Q4 25 BEAT FY | $3.38 | $3.65 | +8.01% | $76.44B | +3.54% |
| FY Full Year | $13.41 | $13.64 | +1.73% | $281.72B | +0.95% |
| Q3 25 BEAT | $3.22 | $3.46 | +7.45% | $70.07B | +2.37% |