Microsoft reports strong cloud revenue and Copilot usage growth in Q3 FY2027
Microsoft announced that cloud revenue reached $63.9 billion in the quarter ended September 30, 2026, a 30% year‑over‑year increase, while Azure grew 48% and daily Copilot users rose nearly 50% quarter over quarter. Total quarterly revenue was $92.3 billion, up 19%, and net income hit $36.6 billion, up 32%. The company guided Q4 FY2027 revenue to $96 billion‑$97.1 billion and expects Azure growth of 49%‑50% on a constant‑currency basis.
Why it matters
The guidance signals continued double‑digit revenue growth and a high‑margin cloud business, which should support earnings per share expansion for the next quarter (the company expects adjusted EPS of $4.89, up 18% YoY)【2】. Investors will watch whether Microsoft can meet the aggressive Azure growth target amid capacity constraints.
Key facts
- 1Cloud revenue was $63.9 billion, up 30% YoY edtechinnovationhub.com
- 2Azure revenue grew 48% YoY edtechinnovationhub.com
- 3Daily Copilot users increased nearly 50% QoQ and more than fivefold YoY edtechinnovationhub.com
- 4Total quarterly revenue was $92.3 billion, up 19% YoY edtechinnovationhub.com
- 5Net income was $36.6 billion, up 32% YoY edtechinnovationhub.com
- 6Adjusted diluted EPS was $4.89, up 18% YoY futurumgroup.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.