"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)."
"Search advertising revenue excluding traffic acquisition costs increased 12% (up 9% in constant currency)."
"Our AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year."
Microsoft reported Q3 2026 earnings with total revenue of $82.9 billion, an 18% increase year-over-year. Operating income rose 20% to $38.4 billion, while net income increased 20% to $31.8 billion. Search advertising revenue, excluding traffic acquisition costs, grew by 12%. Despite strong financial performance, the company announced the retirement of two senior executives. CEO Satya Nadella emphasized the focus on cloud and AI solutions, noting that the AI business achieved a revenue run rate of $37 billion, reflecting a 123% year-over-year growth.
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