Overview
- Microsoft reported fiscal Q3 results on April 29 with revenue near $82.9 billion and Azure growing about 40%.
- The company said its AI business reached a $37 billion annual run rate with growth of roughly 123% year over year.
- Management is building out capacity at record scale with Q3 capital spending near $30.9 billion and 2026 outlays guided to about $190 billion, which lowered gross margin to roughly 68%.
- Cloud demand remains robust with commercial remaining performance obligations around $625 billion to $627 billion, yet investors are focused on how fast that backlog becomes revenue and cash.
- Wall Street mostly kept Buy ratings but trimmed targets, and shares remain down by the mid‑teens this year despite a recent bounce.