"Microsoft's Q3 FY2026 earnings report revealed $82.88 billion in revenue and an EPS of $4.27, exceeding expectations. The AI business surpassed an annual revenue run rate of $37 billion, reflecting a 123% year-over-year increase."
"Despite a 12.03% decline year-to-date, 55 out of 58 analysts maintain Buy or Strong Buy ratings for Microsoft, with a consensus target of $572.67, indicating strong market confidence."
"Azure's growth at 40% and a commercial RPO backlog of $627 billion provide a solid foundation for future performance, while operating margins remained strong at 45.62%."
"Risks include an 84.39% year-over-year increase in capital expenditures and $3.1 billion in investment losses from OpenAI, which could impact future cash flow and market perception."
Microsoft reported $82.88 billion in revenue and an EPS of $4.27, surpassing expectations. The AI business achieved a run rate of $37 billion, growing 123% year-over-year. Despite a year-to-date decline of 12.03%, analysts maintain a bullish outlook with a consensus target of $572.67. Azure's growth at 40% and a $627 billion RPO backlog support future performance. However, increased capital expenditures and investment losses in OpenAI present risks that investors should monitor closely.
Read at 24/7 Wall St.
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