Q3 DAU YoY growth accelerated to 29% from 23% in Q2, and Q4 bookings growth guidance is +13%, slightly above prior guidance.
However, the second tranche of user growth incentives and the full rollout of Video Call will leave Q4 Adj. EBITDA roughly flat YoY at about $84 mn. Meanwhile, the company sunset 'Max' and plans to ramp monetization next year without adding friction to the free experience.
Q4 revenue guide is approx. $17.0bn, with data center up ~50% QoQ. Demand still outstrips supply.
For 2027, revenue is expected to grow >80%, and server revenue to double. The company is planning for a double-digit decline in the PC market next year and stepping up R&D and supply-chain investment, betting on multi-GW deployments of Helios and MI500.
Q3 revenue rose 32%, with AI channel orders up 3.3x YoY.
Q4 revenue growth guidance remains just above 30%.Investments in Sidekick and infrastructure compressed subscription GPM to 79%, while Q4 FCF margin is guided to be flat YoY.The company is also betting on Shop Pay and Catalog as the base layer for Agent-based shopping.Store-level margin for self-operated stores recovered to 23.3%, roughly back to pre-subsidy levels. Non-GAAP net profit reached RMB 2.1bn, a quarterly record.
However, self-operated same-store sales fell 11.1% YoY due to the high base from last year's delivery subsidies (declines narrowed sequentially from Jul–Sep, with recovery accelerating in Q4). Meanwhile, the board authorized a $500mn one-year buyback, and the company will maintain a demand-driven, industry-leading store-opening cadence.The prediction market went live in Feb, and by Q3 its annualized revenue had surpassed $200 mn. Together with derivatives, it accounted for about 25% of trading revenue, cushioning a 10% QoQ decline in spot volumes, but overall revenue was flat QoQ. The company is prioritizing AI Agent accounts, tokenized stocks, and post-quantum custody as new growth and defensive focuses.
DCAI revenue rose nearly 80% YoY. Full-year revenue is on track to beat the initial outlook by almost $10bn.
However, an Israel fab shutdown and PC destocking drove Q4 guidance down to $15–16bn and GPM to 38%. The company expects the server CPU TAM to top $200bn within five years and is ramping 2027 capex.AWS accelerated for six straight quarters to 39.3%. Management expects >40% growth in both 2027 and 2028, and sees a $1tn business in 5–10 yrs.
That said, capex is approx. $220bn in 2026, with 2027 significantly higher. Trainium will be sold externally by end-2027.Data center revenue rose 61% QoQ to $4.8bn. Next-quarter revenue is guided to $12.2–12.6bn, but management noted the Mar quarter is typically the weakest on a QoQ basis and advised modeling conservatively. NBM has secured roughly half of FY27 and about two-thirds of FY28 wafer allocation, and the pipeline exceeds the company's supply through the end of the decade.
Cloud revenue rose 103% YoY to $30.7bn, with backlog reaching $561bn.
However, from Q4, the ramp-up of third-party compute capacity will pressure cloud margins.Search in Q4 will also lap a tough comp of several percentage points and face larger FX headwinds.
The company is positioning its TPU systems as an external platform, with sales expected to scale meaningfully by 2027.Microsoft Cloud revenue was $63.9bn, with growth accelerating to 30% YoY. Azure grew 48%, and management guided 49–50% for next quarter.
However, some third-party GPU capacity will shift to H2 FY, and commercial bookings fell 12% YoY. The company is prioritizing growth in Foundry (revenue up >3x YoY) and usage-based billing for Copilot.