MSFT · 10-Q · 2026Q1 · Full report

Cloud Services Growth

MICROSOFT CORP · 2026-04-29 · Importance 65 · Surprise 48 · No source text

Total revenue for the three months ended March 31, 2026 increased $12.8 billion or 18% to $82,886 million driven primarily by Microsoft Cloud. Microsoft Cloud revenue was $54.5 billion in the quarter, up 29% year-over-year, with Azure and other cloud services up 40% and Microsoft 365 Commercial cloud up 19%. More Personal Computing revenue decreased 1% year-over-year for the quarter, with Windows OEM and Devices down 2% and Xbox content and services down 5%, partially offset by Search advertising ex-TAC up 12%. Commercial remaining performance obligation and cloud contract activity drove multi-year subscription recognition shifts that supported the revenue mix toward cloud for the quarter.

Key facts

• Microsoft Cloud revenue increased 29% to $54.5 billion in the third quarter of fiscal year 2026. source
• Intelligent Cloud revenue increased $7.9 billion or 30% in the three months ended March 31, 2026; Server products and cloud services revenue increased $7.8 billion or 32%, with Azure and other cloud services revenue growing 40%. source
• Total revenue for the three months ended March 31, 2026 was $82,886 million, an 18% increase versus $70,066 million a year earlier. source
• Microsoft 365 Consumer cloud revenue increased 33% in the third quarter of fiscal year 2026. source
• Azure and other cloud services revenue increased 40% in the third quarter of fiscal year 2026. source
• Dynamics 365 revenue increased 22% in the third quarter of fiscal year 2026. source
• Search advertising revenue excluding traffic acquisition costs increased 12% in the third quarter of fiscal year 2026. source
• Microsoft 365 Commercial cloud revenue increased 19% in the third quarter of fiscal year 2026. source

Impact estimates