Overview
- Microsoft beat forecasts with fiscal Q3 revenue of about $82.9 billion, up 18% year over year, and net income of $31.8 billion, up 23%.
- Azure grew roughly 40% and the company guided Azure and other cloud services to 39%–40% growth in the current quarter.
- The AI business reached a $37 billion annual run rate with 123% growth, showing demand beyond core cloud rentals.
- The company reported a $627 billion cloud backlog that supports multi‑year revenue and returned $10.2 billion to shareholders with $32 billion in cash on hand.
- Deutsche Bank cut its price target to $550 yet kept a Buy rating, while market commentary noted the shares are down about 15% in 2026 and trading near 21 times operating income.