Microsoft Earnings: AI Business Hits $37Bn Run Rate as Copilot Passes 20 Million Seats

Microsoft 365 Copilot hits 20 million paid seats

Context from data and AI agent activity spins a flywheel that generates still more context, Microsoft CEO said.

Microsoft Earnings: AI Business Hits $37Bn Run Rate as Copilot Passes 20 Million Seats

Microsoft closed its fiscal third quarter of 2026 with revenue of $82.9 billion, up 18 percent year-over-year, beating Wall Street’s forecast of $81.39 billion. The Q3 2026 earnings marked a notable bounce for Microsoft after it recently endured its worst Wall Street Quarter since 2008. The results were driven by continued strength in cloud infrastructure and a rapidly expanding AI business that Satya Nadella, Microsoft’s chairman and CEO, descr…