microsoft recently released its fiscal third-quarter results for 2026 (ending march 31, 2026), revealing significant growth in both revenue and net profit, with cloud computing and artificial intelligence (ai) emerging as the core drivers.
the financial report shows that microsoft’s total revenue for the quarter reached $82.886 billion, up 18% year over year; net profit was $31.778 billion, a 23% increase; and diluted earnings per share were $4.27, also up 23%. these results underscore microsoft’s strong performance in its key business segments.
by business segment, the productivity and business processes segment generated $35 billion in revenue, up 17% year over year. within this segment, microsoft 365 commercial cloud revenue grew by 19%, while consumer cloud revenue increased by 33%, reflecting the continued expansion of enterprise demand for cloud-based office services and growing consumer preference for subscription offerings. the intelligent cloud segment posted $34.7 billion in revenue, up 30% year over year, with azure and other cloud services seeing revenue growth of 40%, further solidifying microsoft’s leadership in the cloud computing market. the more personal computing segment reported $13.2 billion in revenue, down 1% year over year, primarily due to weakness in the traditional pc market.
the synergistic effect between ai and cloud businesses was particularly pronounced. microsoft’s total cloud revenue reached $54.5 billion, up 29% year over year; annualized ai revenue surpassed $37 billion, a staggering 123% increase compared with the prior year, making it the fastest-growing segment. this data indicates that microsoft’s strategic positioning in the ai space is gradually translating into tangible returns.
in addition, microsoft continues to return value to shareholders through dividends and share repurchases, with $10.2 billion returned this quarter. at the same time, the company has increased its investment in infrastructure, with capital expenditures and finance lease payments totaling $31.9 billion, up 49% year over year, laying the foundation for future growth.
