TLDRMicrosoft Stock Jumps 3.43% After Earnings as Revenue Climbs 18% to $82.9 BillionAzure Growth Hits 40% as Microsoft Shares Rally to $549.20 After Quarterly ResultsMicrosoft Earnings Beat Expectations as Net Income Rises 23% to $31.8 BillionMicrosoft AI Revenue Run Rate Surpasses $37 Billion, Rising 123% Year Over YearMicrosoft Cloud Revenue Reaches $54.5 Billion as Commercial Backlog Jumps 99%Microsoft (MSFT) shares rallied 3.43% in after-hours trading to $549.20 following its third-quarter fiscal 2026 earnings report. The stock gained $18.19 after closing at $531.01, down 0.06% during the regular session. Strong revenue growth, rising cloud demand, and accelerating Azure sales supported the post-market advance.Microsoft Corporation, MSFTMicrosoft Revenue and Earnings Rise as Quarterly Results Exceed ExpectationsMicrosoft reported revenue of $82.9 billion for the quarter ended March 31, 2026, representing an 18% year-over-year increase. Revenue growth reached 15% after adjusting for currency movements, reflecting continued demand across its major business segments. Meanwhile, operating income climbed 20% to $38.4 billion, while adjusted currency growth reached 16%.Net income increased 23% to $31.8 billion on a generally accepted accounting principles (GAAP) basis. Additionally, diluted earnings per share rose 23% to $4.27, compared with $3.46 in the corresponding quarter last year. Microsoft also reported non-GAAP earnings growth of 21%, excluding the impact of its OpenAI investments.The results exceeded management’s expectations for revenue, operating income, and earnings per share. Non-GAAP net income reached $31.79 billion, compared with $26.41 billion a year earlier. Similarly, adjusted earnings per share increased to $4.27 from $3.54, demonstrating stronger profitability across the reporting period.Azure Growth Hits 40% as Microsoft Cloud Revenue Reaches $54.5 BillionMicrosoft Cloud remained a major contributor to quarterly performance, generating $54.5 billion in revenue. The figure increased 29% year over year, or 25% after currency adjustments, as businesses continued adopting cloud services. Commercial remaining performance obligations also surged 99% to $627 billion, indicating substantial contracted demand for future services.Azure and other cloud services revenue increased 40% year over year, or 39% in constant currency. The growth highlighted Microsoft’s expanding cloud business and its role in meeting demand for artificial intelligence infrastructure. Furthermore, the Intelligent Cloud segment generated $34.7 billion in revenue, marking a 30% annual increase.Productivity and Business Processes generated $35 billion in revenue, up 17% from the previous year. Microsoft 365 Commercial cloud revenue increased 19%, while its consumer cloud business recorded 33% growth. LinkedIn revenue climbed 12%, and Dynamics 365 revenue advanced 22%, extending growth across Microsoft’s productivity and business software portfolio.AI Revenue Expands as Microsoft Reports Mixed Results Across Other BusinessesMicrosoft’s artificial intelligence business surpassed an annual revenue run rate of $37 billion, increasing 123% year over year. The company continues expanding its infrastructure and software offerings to support growing demand for AI-powered business applications. These developments complement Azure’s growth and strengthen Microsoft’s position across enterprise cloud services.More Personal Computing recorded $13.2 billion in revenue, representing a 1% annual decline. Windows OEM and Devices revenue fell 2%, while Xbox content and services revenue decreased 5% during the quarter. In contrast, search advertising revenue excluding traffic acquisition costs increased 12%, providing some support within the segment.Microsoft returned $10.2 billion to shareholders through dividends and share repurchases during the third quarter. The company plans to provide forward-looking guidance during its earnings conference call and webcast. Meanwhile, the after-hours share price of $549.20 reflected a positive market response to stronger earnings and sustained cloud growth. The post Microsoft (MSFT) Stock: Rallies After Q3 Earnings as Azure Growth Hits 40% and Revenue Climbs 18% appeared first on Blockonomi.