Microsoft Reports Strong Fiscal Year 2026 Third Quarter Results
Microsoft Corporation announced on April 29, 2026, that its revenue for the third quarter ended March 31, 2026, reached $82.9 billion, marking an 18% increase compared to the same period in the previous fiscal year. The company’s growth was driven by continued demand for its cloud and artificial intelligence infrastructure, according to official financial results released by the firm.
Financial Performance Overview
Microsoft’s financial metrics for the quarter showed broad-based growth across its core business segments. Operating income rose to $38.4 billion, a 20% increase over the previous year. On a GAAP basis, net income climbed 23% to $31.8 billion, while diluted earnings per share reached $4.27, representing a 23% increase.
When adjusted to exclude the financial impact of investments in OpenAI, Microsoft reported a 20% increase in non-GAAP net income and a 21% rise in non-GAAP diluted earnings per share. These figures underscore the company’s focus on scaling its AI capabilities alongside its established cloud services.
Growth in Artificial Intelligence
A primary driver for the company’s performance is its expanding AI portfolio. During the earnings announcement, Microsoft CEO Satya Nadella stated that the company’s AI business has surpassed an annual revenue run rate of $37 billion, reflecting a 123% increase year-over-year. Nadella emphasized that the company is prioritizing the delivery of cloud and AI infrastructure designed to assist businesses in the “agentic computing era.”
Amy Hood, executive vice president and chief financial officer, noted that the results exceeded internal expectations. According to Hood, the strong financial execution reflects both the scalability of the Microsoft Cloud and the growing enterprise demand for integrated AI solutions.
Key Financial Metrics
| Metric | Growth (Year-over-Year) |
|---|---|
| Revenue | 18% |
| Operating Income | 20% |
| GAAP Net Income | 23% |
| AI Revenue Run Rate | 123% |
Looking Ahead
Microsoft continues to provide resources for investors to track its fiscal progress. The company maintains a direct stock purchase and dividend reinvestment program administered by Computershare. Shareholders and interested parties can access the full Fiscal Year 2026 third-quarter press release, along with historical filings and the 2025 Annual Report, through the Microsoft Investor Relations portal.
As of June 7, 2026, the company remains focused on its stated goals of accelerating AI integration and maintaining cloud infrastructure reliability. Investors looking for future updates can monitor the official Microsoft blog and investor relations announcements for upcoming quarterly dividend schedules and earnings release dates.