Microsoft Reports $82.89 Billion Revenue With Surging AI Growth

Microsoft reported third-quarter FY2026 revenue of $82.89 billion, an 18.3% increase year-over-year, with net income reaching $31.78 billion. The company's AI business saw significant momentum, achieving an annual revenue run rate of $37 billion and 123% growth, while Azure expanded by 40%.

Satya Nadella highlighted the aggressive growth of the AI sector, though the company faces financial headwinds. Capital expenditures rose to $30.88 billion in the third quarter, and investment losses related to OpenAI widened to $3.1 billion. To lower these operational costs, Microsoft is developing its own proprietary AI silicon.

A restructuring at OpenAI has granted Microsoft a 27% stake valued at approximately $135 billion and secured $250 billion in Azure consumption. Despite these fundamental gains, Microsoft's stock has fallen 17.47% year-to-date, influenced by broader market volatility and concerns regarding the Federal Reserve.