Microsoft Q3 2026: AI Business Hits $37B Annual Run Rate (Up 123%), Azure Grows 40%, Revenue $82.9B

Microsoft·high signal

Microsoft reported Q3 FY2026 results on April 29: $82.9B revenue (+18% YoY), $38.4B operating income (+20%), and $31.8B net income (+23%). The AI business surpassed $37B annual run rate, up 123% year-over-year. Azure grew 40%, beating analyst expectations of 38.8-39.3%. Microsoft 365 Copilot hit 20M+ paid seats. Capital expenditures for 2026 projected at $190B, including $25B from surging memory costs. The 123% AI growth figure is the clearest proof point yet for enterprise AI demand.