US EditionMicrosoft Beats Wall Street Expectations with $81.3B Revenue
Azure cloud and AI businesses drove 17% revenue growth to $81.3 billion in the quarter, with analysts highlighting strong GenAI adoption and Microsoft Copilot expansion.
- On Wednesday, Microsoft reported $135 billion in revenue for the October–December quarter, up 17% and beating expectations.
- Analysts point to Microsoft Copilot suite and the Azure AI stack as driving investor focus amid 40% growth in Azure cloud, despite competition from Anthropic.
- Accounting changes around OpenAI meant Microsoft recorded net profit of $30.9 billion, or $4.14 per share, and $38.5 billion excluding OpenAI investments reflecting restructuring last year.
- Market moves showed Microsoft shares, up about 7% over the past year but down more than 11% in the past three months, with 60 of 65 analysts rating it a buy, and Borges keeping a $655 target.
- Looking ahead, analysts expect Microsoft to achieve 40% growth over the next four quarters, and Borges wrote that Microsoft is expected to detail its durable competitive advantages.
15 Articles
15 Articles
Microsoft reports strong cloud earnings in Q2 as gaming declines
Microsoft just posted the second quarter of its 2026 fiscal financial results. The software maker made $81.3 billion in revenue and a net income of $30.9 billion during Q3. Revenue is up 17 percent, and net income has increased by 23 percent. The holiday quarter saw PC shipments grow unexpectedly amid an ongoing RAM shortage. Microsoft's end of Windows 10 support helped push PC shipments up, but IDC revealed earlier this month that PC makers hav…
The U.S. markets are waiting for the results of several large companies, including Meta, Microsoft and Tesla. ...
Market Consensus Juan J. Fdez-Figares (Link Securities) The European stock exchanges continued yesterday to recover some of what was transferred last week, which led their main indices to close with sensitive advances, with the exception of the German Dax, which did so downwards. In the absence of important macro and business references, and without news of relevance in the geopolitical field, the investors took advantage of this relative calm …
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