Microsoft Q3 Earnings Beat, But Stock Continues Slide
Microsoft reported better-than-expected Q3 FY2026 earnings with EPS of $4.27 and revenue of $83 billion. Despite the beat, the stock continues its post-earnings sell-off, testing support at the 21-day moving average.
Key Numbers
Microsoft Corporation (MSFT) reported fiscal third-quarter 2026 results for the period ending March, exceeding analyst expectations. The software giant posted earnings per share of $4.27 on revenue of $83 billion. Despite the beat, the stock has been in a downtrend since April's earnings sell-off, now testing its 21-day moving average.
Key Financial Results
| Metric | Value | YoY Change |
|---|---|---|
| Revenue | $83 billion | +12% |
| Net Income | ~$31.5 billion (estimated) | +15% |
| EPS | $4.27 | +14% |
Highlights from the Report
Growth was driven by Azure cloud services and AI-related businesses. Office 365 and LinkedIn also contributed positively.
Forward Guidance
Microsoft did not provide specific quarterly guidance but emphasized continued investment in AI infrastructure and Azure expansion.
Impact on Stock
Despite the earnings beat, MSFT shares have fallen about 4% since the April announcement, reflecting concerns over slowing cloud growth and rising competition.
What This Means for Investors
The results underscore Microsoft's strong fundamentals, but the stock's decline suggests the market had already priced in the beat. Investors should monitor AI developments and competitive dynamics with Amazon and Google.
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