Microsoft shares ( MSFT ) rose 2.7% in after-hours trading. The company's total revenue prior to this was $92.3 billion, exceeding the market's expectation of $90.69 billion.
Microsoft disclosed the Azure performance for the first time on its own, showing a year-on-year revenue increase of 48%, which is higher than the market's estimate of 45%.
MSFT's stock price rose by 3% on the day, and has accumulated a 17.71% increase over the past three months; analysts' average target price is $610.34.
Microsoft (Nasdaq ticker: MSFT) rose 2.7% to $546.21 after the release of its financial report for the third quarter of fiscal year 2026, as the company's performance exceeded analysts' expectations.
Microsoft Financial Report Summary
According to the financial report, Microsoft achieved revenue of $92.3 billion, a year-on-year increase of 19%, which is higher than Wall Street's forecast of $90.69 billion.
In addition, the company recorded operating profits of $45.9 billion, which is higher than the expected $44.06 billion, representing a year-on-year increase of 21%. The adjusted net profit was $36.4 billion, also exceeding analysts' expectations of $35.13 billion.
It is worth noting that starting from the fiscal year 2027 (September 2026), Microsoft adopted a new method of disclosure, dividing revenue into two main categories:
- AI agents and infrastructure: Revenue amounted to 76.8 billion US dollars, higher than the expected 75.6 billion US dollars.
- Devices and consumer: Revenue amounted to 15.5 billion US dollars, exceeding the expected 15 billion US dollars.
In addition, since Microsoft officially launched Azure in 2010, this is the first time it has disclosed its revenue data. The revenue from Azure increased by 48% year-on-year, reaching $33.17 billion, which is significantly higher than the market forecast of a 45% growth rate; Microsoft's cloud business revenue was $63.9 billion, up 30% year-on-year.
In terms of capital expenditure ( CapEx ), Microsoft spent $39.4 billion in that quarter, which is significantly lower than the expected $46.59 billion. Due to the company's large-scale investment in AI construction, the ratio of capital expenditure to revenue was approximately 42.7%.
Executive Comments and Guidance for the Next Quarter
Microsoft CEO Satya Nadella stated that the company is focusing on "super intelligence" and said:
"By helping various organizations build and possess their own intelligence, and by gaining trust through proxy security and assurance, we are transforming innovation into a growing adoption rate, as well as a real-world impact that spans across all industries."
Chief Financial Officer Amy Hood focused on discussing this positive performance report.
For the next quarter, the company expects revenue to range from $96 billion to $97.1 billion, representing a year-over-year increase of 18% to 19%; at the same time, it is anticipated that the growth rate of Azure will reach 49% to 50%, with capital expenditures exceeding $50 billion.
Microsoft Stock Price Performance and Subsequent Targets
The report indicates that the performance targets set by Hood, along with the large-scale capital commitments, have boosted investors' sentiment towards the MSFT stock. The stock has seen a 3% increase over 24 hours and a 17.71% increase over the past three months.
