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AI Is Fueling Microsoft’s Growth. Can It Sustain the Costs? | PYMNTS.com

AI Is Fueling Microsoft’s Growth. Can It Sustain the Costs? | PYMNTS.com

By PYMNTS
Publication Date: 2026-04-29 23:19:00

Microsoft is taking a platform approach to artificial intelligence. During the tech giant’s third quarter 2026 earnings call Wednesday (April 29), leadership laid out their bet that in the agentic computing era, value is most likely to accrue to ecosystems rather than standalone products.

“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 chief executive officer of Microsoft.

The company delivered double-digit growth across its core segments, primarily fueled by massive demand for AI and cloud services. Microsoft’s AI business alone surpassed a $37 billion annual revenue run rate and grew 123% year over year; while company revenue reached $82.9 billion, up 18% year over year, and net income climbed 23% to $31.8 billion.

Still, Microsoft’s better-than-expected results come against a volatile backdrop for the shares in early 2026. The…

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