Microsoft reported its fiscal third-quarter 2026 earnings on April 29, 2026, with revenue reaching $69.3 billion, up 12% year-over-year. The company's AI services, particularly Microsoft Copilot, contributed significantly to growth, with Azure AI revenue surging 45%.
CEO Satya Nadella emphasized a 'multi-model' strategy, integrating models from OpenAI, Meta, and others into Azure. Copilot, now embedded in Microsoft 365, Dynamics 365, and GitHub, saw a 30% increase in enterprise adoption, with over 400,000 organizations using the tool.
Net income rose to $24.5 billion, driven by cloud and AI services. However, capital expenditures increased to $18.2 billion, reflecting heavy investment in AI infrastructure. Analysts noted that while Copilot momentum is strong, competition from Google and Amazon remains intense.
