---
title: "Microsoft Q3 Highlights: AI Revenue Up 123% YoY, Hits Annual Run Rate $37 Billion, Helps With Double Beat"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/284638776.md"
description: "Microsoft reported Q3 revenue of $82.9 billion, up 18% YoY, exceeding estimates. Earnings per share were $4.27, beating the consensus of $4.06. Key segments included Productivity and Business Processes at $35.0 billion (+17% YoY) and Intelligent Cloud at $34.7 billion (+30% YoY). Cloud revenue reached $54.5 billion (+29% YoY), with AI revenue up 123% YoY, hitting a $37 billion annual run rate. Microsoft stock fell 1.3% to $418.88 in after-hours trading."
datetime: "2026-04-30T01:19:12.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/284638776.md)
  - [en](https://longbridge.com/en/news/284638776.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/284638776.md)
---

# Microsoft Q3 Highlights: AI Revenue Up 123% YoY, Hits Annual Run Rate $37 Billion, Helps With Double Beat

**Microsoft Corporation** (NASDAQ:MSFT) announced third-quarter financial results on Wednesday after market close.

Here are the key highlights.

## Microsoft Q3 Earnings

Microsoft reported third-quarter revenue of $82.9 billion, up 18% year-over-year. The revenue total beat a Street consensus estimate of $81.39 billion according to data from Benzinga Pro.

The company reported quarterly earnings of $4.27 per share, beating a Street consensus estimate of $4.06 per share.

Here’s a look at Microsoft’s revenue by reporting segment:

-   Productivity and Business Processes: $35.0 billion, +17% year-over-year
-   Intelligent Cloud: $34.7 billion, +30% year-over-year
-   More Personal Computing: $13.2 billion, -1% year-over-year

Overall Microsoft Cloud revenue was $54.5 billion, up 29% year-over-year. The company said its commercial remaining performance obligation was $627 billion at the end of the quarter, up 99% year-over-year.

Azure and other cloud services revenue was up 40% year-over-year in the quarter.

"We are focused on delivering cloud and AI infrastructure and solutions that empower every business to eval-max their outcomes in the agentic computing era," Microsoft CEO **Satya Nadella** said. "Our AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year.”

## What's Next For Microsoft

The company said it will provide forward guidance on its conference call, which can be watched below.

## Microsoft Stock Price Action

Microsoft stock is down 1.3% to $418.88 in after-hours trading Wednesday versus a 52-week trading range of $356.28 to $555.45.

**Read Also:Massive Magnificent 7 Earnings Blitz Is Coming — Expect Big Swings**

_Image via Shutterstock_

### Related Stocks

- [MSFT.US](https://longbridge.com/en/quote/MSFT.US.md)
- [CLOU.US](https://longbridge.com/en/quote/CLOU.US.md)
- [MSFO.US](https://longbridge.com/en/quote/MSFO.US.md)
- [XSW.US](https://longbridge.com/en/quote/XSW.US.md)
- [MSFD.US](https://longbridge.com/en/quote/MSFD.US.md)
- [IGV.US](https://longbridge.com/en/quote/IGV.US.md)
- [MSFU.US](https://longbridge.com/en/quote/MSFU.US.md)
- [MSFX.US](https://longbridge.com/en/quote/MSFX.US.md)
- [MSFL.US](https://longbridge.com/en/quote/MSFL.US.md)
- [IXN.US](https://longbridge.com/en/quote/IXN.US.md)
- [MSFY.US](https://longbridge.com/en/quote/MSFY.US.md)

## Related News & Research

- [Microsoft Q3 Earnings Preview: What To Expect From Upcoming Report](https://longbridge.com/en/news/284432552.md)
- [BUZZ-Street View: Azure gains keep Microsoft bulls onside despite capex overhang](https://longbridge.com/en/news/284724200.md)
- [Microsoft Q3 Earnings Preview — Can Strong Results Restart the MSFT Stock Rally?](https://longbridge.com/en/news/284180112.md)
- [Microsoft Expects 2026 Capital Expenditures To Be About $190 Bln](https://longbridge.com/en/news/284652523.md)
- [Choreo LLC Has $152.10 Million Stock Holdings in Microsoft Corporation $MSFT](https://longbridge.com/en/news/284874742.md)