Microsoft 10-Q: Q3 FY2026

Key insights

5 takeaways · ~2 min read

01
Microsoft signed a new definitive agreement with OpenAI in October 2025, extending their strategic partnership and building on their shared vision for AI. Microsoft holds approximately 27% of OpenAI on an as-converted basis and has made total funding commitments of $13 billion, with $11.7 billion funded as of December 31, 2025.
02
Microsoft's Intelligent Cloud segment saw significant growth, with revenue increasing by $7.4 billion (29%) and operating income by $3.0 billion (28%). Azure and other cloud services revenue grew 39%, driving a 31% increase in server products and cloud services revenue.
03
Microsoft repurchased $9.919 billion worth of common stock (20 million shares) in the first two quarters of fiscal year 2026, compared to $6.300 billion (15 million shares) in the same period of fiscal year 2025. As of December 31, 2025, $47.4 billion remained of the $60.0 billion share repurchase program.
04
Microsoft declared dividends of $1.82 per share ($13.522 billion total) in fiscal year 2026, an increase from $1.66 per share ($12.339 billion total) in fiscal year 2025.
05
The More Personal Computing segment experienced a revenue decrease of $401 million (3%). Specifically, Xbox content and services revenue decreased by 5%, while Windows OEM and Devices revenue increased by 1% and search and news advertising revenue (excluding traffic acquisition costs) increased by 10%.