By Daniel Howley
Publication Date: 2026-04-30 14:36:00
Microsoft (MSFT) reported its third quarter results after the bell on Wednesday, beating analysts’ expectations on the top and bottom lines, and said its AI business now has a $37 billion annual revenue run rate, up 123% year over year.
Shares of the company fell, however, after company said it anticipates Q4 capital expenditures of $40 billion, and said capex for the calendar year 2026 would reach $190 billion. The company’s previous forecasts had annualized AI investment at closer to $150 billion.
Despite that, Microsoft will continue to be capacity-constrained through 2026. Microsoft stock fell as much as 5% on Thursday following the report.
For the quarter, Microsoft saw earnings per share (EPS) of $4.27 on revenue of $82.89 billion. Wall Street was anticipating EPS of $4.04 on revenue of $81.46 billion, based on Bloomberg analyst consensus estimates.
It also said it has remaining performance obligations of $627 billion, up 99% year-over-year, with a…