Strategy (MSTR) Q3 2026 Earnings
GAAP diluted EPS includes a $20.91 billion ($20,912,392 thousand) unrealized/realized gain on digital assets from bitcoin fair value changes, partially offset by a $1,409,311 thousand provision for income taxes; also reflects $419.6 million of preferred stock dividends and a $5,517 thousand deemed contribution related to preferred stock repurchases.
How Did MSTR Stock React to Q3 2026 Earnings?
Did MSTR Beat Earnings? Q3 2026 Results
Yes. Strategy reported Q3 2026 earnings of $44.75 a share on Oct 29, 2026, beating the $17.98 consensus estimate by 148.9%. Revenue was $125.4M against a $129.4M estimate.
Strategy Inc delivered a blowout third quarter for 2026, posting GAAP diluted EPS of $44.75 and beating the $17.98 consensus by 148.88%, driven almost entirely by a $20.91 billion unrealized and realized gain on digital assets as bitcoin prices rebounded sharply after losses in each of the first two quarters of the year. That windfall, <a href="https://247wallst.com/investing/2026/10/25/will-a-20-billion-bitcoin-windfall-fuel-a-massive-microstrategy-short-squeeze-oct-29/">which had traders watching closely</a>, pushed operating income to $20.91 billion from $3.89 billion a year earlier, though net income attributable to common stockholders was reduced by $419.56 million in preferred dividends and a $1.41 billion tax provision. Revenue of $125.43 million fell short of the $129.36 million consensus and slipped 2.5% year over year as the legacy software business continued its transition toward cloud subscriptions, which grew to $68.59 million, even as product licenses and support declined. Looking ahead, Strategy intends to maintain the 12.00% STRC dividend rate, transition all preferred series to daily dividends beginning November 1, and continue disciplined STRC repurchases under its remaining $956.70 million authorization, while Executive Chairman Michael Saylor expressed confidence that bitcoin is entering its next bull market.
- $20.91 billion gain on digital assets in Q3 2026 as bitcoin price rose 43% in the quarter
- Subscription services revenue rose to $68.6 million from $46.0 million year over year
- Product licenses revenue fell to $3.8 million from $17.4 million and product support fell to $37.7 million from $51.1 million
- Gross margin improved to 71% from 70%
- Interest income of $47.1 million versus $0.1 million a year ago on larger USD Assets and short-term investments
- Preferred dividends rose to $419.6 million from $139.9 million
“Strategy demonstrated its commitment to returning STRC to health. We grew our USD Assets to $5.1 billion, increased USD Duration to 3.4 years, and repurchased $2.0 billion of STRC.”
Strategy CEO, on the earnings call
What Is Strategy's Outlook?
Strategy intends to keep the STRC dividend rate at 12.00% to support trading near the $100 stated amount. It intends to be a regular and disciplined purchaser of STRC while STRC trades below $100, with about $956.7 million remaining on its $3.0 billion Digital Credit repurchase authorization. It may repurchase MSTR under its $1.0 billion program when management believes the stock trades below intrinsic value. STRC moves to daily dividends starting November 1, 2026, and STRF, STRK and STRD on January 1, 2027. The company does not expect positive E&P for the foreseeable future and expects preferred distributions to be treated as non-taxable return of capital for ten years or more. CFO Andrew Kang departs November 5, 2026; Reza Virasteh becomes CFO effective January 1, 2027. Executive Chairman Michael Saylor said he believes bitcoin is at the beginning of its next bull market.
MSTR YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $125.4M | $128.7M | −2.5% |
| Gross Profit | $89.6M | $90.7M | −1.2% |
| Operating Income | $20.9B | $3.9B | +437.4% |
| Net Income | $19.5B | $2.8B | +601.4% |
MSTR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.