By Geoffrey Seiler
Publication Date: 2026-05-04 15:30:00
Despite Microsoft‘s (MSFT +0.32%) continued strong operational performance over the past two years, its stock has basically been running in place. From the end of April 2024 to the end of April 2026, the stock is up only about 1%. The company’s heavy reliance on OpenAI in its cloud business, together with getting thrown into the software-as-a-service (SaaS) loser bucket, has hindered its stock.
Let’s dip into its fiscal Q3 results to see if the stock has the potential to finally break out from here.
Image source: The Motley Fool.
Azure continues to shine
Microsoft’s cloud computing unit, Azure, once again shone, with revenue surging 40% (39% in constant currencies). It was the 11th straight quarter that Azure revenue has risen by 30% or more, as demand for compute power and artificial intelligence (AI) services continues to power results. It noted that demand continues to outstrip capacity, while annual recurring revenue (ARR) for its AI business soared 123% as customers adopt…
