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Microsoft (MSFT) Q3 FY26 earnings results (third quarter fiscal 2026)
10-Q filed Apr 29, 2026
Microsoft (MSFT) reported revenue of $82.9B for the third quarter fiscal 2026 (Q3 FY26), +18% from a year earlier and +2% from the quarter before. Operating margin was 46.3%, net earnings $31.8B (38.3% of revenue).
Microsoft, Q3 FY26: revenue $82.9B (+18% year over year), operating margin 46.3%, net earnings $31.8B, operating cash flow $46.7B. The chart follows the revenue to costs, profit and cash.
| Q3 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $82.9B | +2% | +18% |
| Gross profit | $56.1B | +1% | +16% |
| Operating profit | $38.4B | +0.3% | +20% |
| Net earnings | $31.8B | -17% | +23% |
| Operating cash flow | $46.7B | +31% | +26% |
| Free cash flow | $15.8B | +169% | -22% |
What changed
Revenue was $82.9B in Q3 FY26, up 18% year over year and up 2% from the previous quarter. Server Products and Cloud Services was the largest line at 39% of revenue. Server Products and Cloud Services added $7.8B year over year (up 32%), 61% of the total change. Other Products and Services declined 93%.
Gross margin was 67.6%, down 1.1 points from Q3 FY25. Operating profit was $38.4B, a 46.3% margin (up 0.7 points year over year). Of the extra revenue versus Q3 FY25, 50% reached operating profit, above the 46% margin then. Operating expenses grew 9% against revenue growth of 18%. The fastest-growing cost line was General & admin (+11%). Net earnings were $31.8B, up 23% year over year. The effective tax rate was 19.2%.
Operating cash flow was $46.7B (up 26% year over year), 147% of net earnings. Non-cash charges added back $10.1B of depreciation and amortization and $3.1B of share-based compensation. Capital expenditures of $30.9B left free cash flow of $15.8B.
Questions
What was Microsoft's revenue in the third quarter fiscal 2026?
Microsoft (MSFT) reported revenue of $82.9B for the third quarter fiscal 2026 (Q3 FY26), +18% from a year earlier and +2% from the quarter before.
Was Microsoft profitable in the third quarter fiscal 2026?
Operating profit was $38.4B (46.3% of revenue) and net earnings $31.8B.
Source: Microsoft 10-Q on SEC EDGAR.