MICROSOFT CORP

MICROSOFT CORP reported Q4 FY2026. EPS came in at $4.74 against a $4.24 consensus, beat by 11.8%. Revenue was $90.0B versus $87.6B expected, beat by 2.7%. Gross margin was 67.2%, down 40 bps from last quarter.

Microsoft MICROSOFT CORP reported a solid Q3 FY2026, with revenue and EPS beating street estimates. Revenue grew 18% year-over-year to $82.9 billion, and EPS came in at $4.27, a 21% increase. While the company's cloud and AI businesses continue to drive growth, the guidance for Q4 suggests a more cautious outlook, particularly in the consumer segment.

MICROSOFT CORP beat a high bar with $81,273.0 million of revenue and $4.14 of EPS, but the investable point is that the market is still treating AI spending as a margin problem while the print shows it remains a capacity-allocation problem. The variant view is that the next revision driver is not Q2 upside itself, it is whether Q3 Azure growth of 37-38% in constant currency proves that $37.5 billion of quarterly capex is still being absorbed fast enough to keep gross margin pressure tolerable.

MICROSOFT CORP did not just beat a cautious quarter, it showed that AI infrastructure spending is being pre-sold through long-duration commercial commitments rather than sitting as speculative capacity. The variant view is that the market is over-penalizing the $34.9 billion capex headline while underpricing the nearly $400 billion commercial RPO signal and the cash-flow mechanics that kept free cash flow at $25.7 billion.

MICROSOFT CORP beat on both revenue and EPS, but the investable surprise is the order book and capex commitment rather than the quarter itself. The market had priced a clean cloud beat; it may still be mispricing the durability of AI infrastructure demand when commercial bookings are over $100 billion and Q1 capital expenditures are guided to be over $30 billion.