Microsoft Reports $82.9B Revenue as Q3 Capex Soars 49%, Forecasts $190B Spend
Microsoft reported record third-quarter capex of $31.9B (up 49% YoY) and forecast $190B in full-year spending while revenue rose 18% to $82.89B and EPS climbed 23% to $4.27. Commercial RPO surged 99% to $627B; AI revenue run rate topped $37B; Copilot paid seats grew 250% to 20M.
1. Third-Quarter Capital Expenditure Jump
Microsoft invested $31.9B in Q3 data center capex, marking a 49% increase over the prior year. Management forecast approximately $190B of full-year 2026 infrastructure spending, reflecting an aggressive capacity build-out that weighed on gross margins but aims to support long-term AI workload growth.
2. Revenue and Earnings Performance
The company delivered $82.89B in revenue, up 18% year-over-year, and generated earnings per share of $4.27, a 23% increase. These figures surpassed consensus estimates, highlighting resilient demand amid rising infrastructure costs.
3. Backlog and AI Momentum
Commercial remaining performance obligation climbed 99% to $627B, underscoring robust contracted future revenue. The AI segment reached a $37B annualized run rate, and Microsoft 365 Copilot adoption expanded to 20M paid seats—a 250% year-over-year surge—indicating deepening enterprise integration and long-term monetization potential.