Microsoft is set to report fiscal Q3 results with consensus forecasts of $4.04 in earnings per share on $81.46 billion in revenue. Productivity and Business Processes and Intelligent Cloud segments are each expected to generate roughly $34.5 billion, while More Personal Computing revenue is forecast to decline about 5.4% to $12.6 billion.

Azure revenue is projected to increase about 38.2% year-over-year, mirroring the prior quarter’s 38% growth that fell short of a potential 40% due to data center capacity bottlenecks. Microsoft expects ongoing data center buildout and regional expansions to add AI processing capability toward the end of its fiscal 2026.

Microsoft renegotiated its OpenAI agreement to eliminate revenue-sharing payments to the startup, while OpenAI retains model access and can license its technology to other cloud providers. Shares have dropped over 20% in the past six months as investors weighed capacity constraints, enterprise software demand risks and AI partnership changes.