Overview
- Microsoft beat fiscal Q3 expectations on April 29 with about $82.9 billion in revenue and $4.27 in EPS as Azure grew roughly 39% to 40% and AI revenue topped a $37 billion annual run rate.
- Management signaled calendar‑year capital spending near $190 billion after $30.9 billion in Q3 and more than $40 billion next quarter, and the company reported a gross margin near 68% due to the AI buildout.
- Shares are down roughly mid‑teens for 2026 even after a 10.2% gain in April and early May recovery as investors focus on cash flow and profitability during the heavy investment phase.
- Monetization signs include about 20 million paid Microsoft 365 Copilot seats, large rollouts such as Accenture’s 740,000 users, and new partner milestones like CGI’s Copilot specialization.
- Power needs are climbing with the data center expansion, and reports say Microsoft is considering delaying its 2030 goal to match hourly electricity use with renewables, highlighting the scale of the AI infrastructure push.