Home / Business and Economy / Microsoft's Q3 Earnings Soar: Cloud Fuels Growth
Microsoft's Q3 Earnings Soar: Cloud Fuels Growth
29 Jan
Summary
- Microsoft reported $81.3 billion revenue and $30.9 billion net income in Q3.
- Cloud revenue exceeded $50 billion, with Azure growing 39 percent.
- Xbox hardware revenue declined 32 percent, but overall cloud services remain strong.
Microsoft has reported its financial results for the third quarter of fiscal year 2026, revealing a robust performance with total revenue of $81.3 billion and a net income of $30.9 billion. This marks a significant increase, with revenue up 17 percent and net income up 23 percent compared to the same period last year.
The company's cloud division continues to be a major driver of growth, with overall cloud revenue surpassing $50 billion, a 26 percent year-over-year increase. Azure and other cloud services specifically saw revenue grow by an impressive 39 percent. The Intelligent Cloud business segment, encompassing Azure and server products, generated $32.9 billion in revenue.
In contrast, the More Personal Computing division, which includes Windows, Xbox, and Surface, experienced a 3 percent decline in revenue. This segment brought in $14.3 billion. Within this division, Xbox hardware revenue saw a sharp decrease of 32 percent year-over-year, continuing a downward trend observed over the past three fiscal years. Gaming revenue overall was down 9 percent, and Xbox content and services, including Game Pass, fell by 5 percent.
