Summary:

• Revenue was $82.9 billion and increased 18% (up 15% in constant currency)
• Operating income was $38.4 billion and increased 20% (up 16% in constant currency)
• Net income was $31.8 billion and increased 23% on a GAAP basis, and increased 20% (up 18% in constant currency) on a non-GAAP basis
• Diluted earnings per share was $4.27 and increased 23% on a GAAP basis, and increased 21% (up 18% in constant currency) on a non-GAAP basis
• Non-GAAP results exclude the impact from investments in OpenAI, explained in the Non-GAAP Definition section below

Microsoft Corp. announced the following results for the quarter ended March 31, 2026, as compared to the corresponding period of last fiscal year.“We are focused on delivering cloud and AI infrastructure and solutions that empower every business to eval-max their outcomes in the agentic computing era,” said Satya Nadella, chairman and CEO, Microsoft. “Our AI business surpassed an annual revenue run rate of $37 billion, up 123% YoY.”

“We delivered results that exceeded expectations across revenue, operating income, and earnings per share, reflecting strong execution and growing demand for the Microsoft Cloud,” said Amy Hood, EVP and CFO, Microsoft.

The following table reconciles our financial results reported in accordance with generally accepted accounting principles (GAAP) to non-GAAP financial results. Additional information regarding our non-GAAP definition is provided below. All growth comparisons relate to the corresponding period in the last fiscal year.

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Business Highlights
Microsoft Cloud revenue was $54.5 billion and increased 29% (up 25% in constant currency), and commercial remaining performance obligation increased 99% to $627 billion.

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Revenue in Productivity and Business Processes was $35.0 billion and increased 17% (up 13% in constant currency), with the following business highlights:

• Microsoft 365 Commercial cloud revenue increased 19% (up 15% in constant currency)
• Microsoft 365 Consumer cloud revenue increased 33% (up 29% in constant currency)
• LinkedIn revenue increased 12% (up 9% in constant currency)
• Dynamics 365 revenue increased 22% (up 17% in constant currency)

Revenue in Intelligent Cloud was $34.7 billion and increased 30% (up 28% in constant currency), with the following business highlights:

• Azure and other cloud services revenue increased 40% (up 39% in constant currency)

Revenue in More Personal Computing was $13.2 billion and decreased 1% (down 3% in constant currency), with the following business highlights:

• Windows OEM and Devices revenue decreased 2% (down 3% in constant currency)
• Xbox content and services revenue decreased 5% (down 7% in constant currency)
• Search advertising revenue excluding traffic acquisition costs increased 12% (up 9% in constant currency)

Microsoft returned $10.2 billion to shareholders in the form of dividends and share repurchases in the third quarter of fiscal year 2026.

Quarterly Highlights, Product Releases, and Customer Stories
Every quarter Microsoft delivers hundreds of products, services, and enhancements. These releases are driven by years of significant research and development investments, to empower customers with greater productivity, security, and differentiated value.

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