- Microsoft unveiled new Copilot capabilities, including a coding tool and an always-on AI agent, and is embedding Word, Excel, and PowerPoint directly within Copilot to make it a one-stop shop for office workers.
- Microsoft's commercial remaining performance obligation reached $678 billion as of fiscal Q4 2026, with roughly $200 billion, or 30%, expected to convert to revenue within the following 12 months, a 37% year-over-year increase.
- Microsoft reported fiscal Q3 2026 EPS of $4.27 and revenue of $82.9 billion, beating estimates on sixth consecutive EPS beat, as Intelligent Cloud grew 40% on Azure and the AI business reached an annualized revenue run rate over $37 billion, up 123% year-over-year.
- Microsoft is rapidly expanding data center capacity, aiming to roughly double it in two years, with $30.88 billion in capital expenditures for infrastructure to support Azure and cloud demand.
Quotes
“Microsoft faces a critical test in delivering on its $678 billion commercial remaining performance obligation, a backlog of unbooked customer contracts as of fiscal Q4 2026”
“The Intelligent Cloud segment, particularly Azure services which grew 40%, and the AI business, which achieved an annualized revenue run rate over $37 billion (up 123% year-over-year), were key drivers of this growth”