Microsoft Statistics 2026: Revenue, Cloud, AI & Workforce Insights

Microsoft’s statistics for fiscal Q3 2026 show the company posted $82.9 billion in revenue for its third fiscal quarter of 2026, up 18% year-over-year, with operating income of $38.4 billion, a quarter that also saw the company surpass an annual revenue run rate of $37 billion for its AI business, up 123% year-over-year.

Key Takeaways

• Microsoft reported Q3 FY26 revenue of $82.9 billion (up 18% year-over-year, or 15% in constant currency), with operating income of $38.4 billion and diluted EPS of $4.27.
• The company’s AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year, per Satya Nadella’s prepared remarks on the April 29, 2026, earnings call.
• Microsoft 365 Copilot crossed 20 million paid enterprise seats in April 2026, up from 15 million disclosed in January 2026, a 33% sequential jump.
• Microsoft Cloud revenue reached $54.5 billion in Q3 FY26 (+29% YoY), with commercial remaining performance obligation climbing 99% to $627 billion.
• As of June 30, 2025, Microsoft employed approximately 228,000 people on a full-time basis, with 125,000 in the U.S. and 103,000 internationally.
• Azure and other cloud services revenue grew 40% in Q3 FY26 (up 39% in constant currency), the third straight quarter of approximately 40% growth.
• Full-year FY2025 revenue reached $281.7 billion, operating income hit $128.5 billion, and net income totaled $101.8 billion.

Editor’s Choice

• Microsoft’s FY2025 total revenue of $281.7 billion represents a $36.6 billion increase over FY2024’s $245.1 billion.
• Microsoft Cloud revenue crossed $50 billion this quarter in Q2 FY26 (calendar Q4 2025), printing $51.5 billion (+26% YoY).
• Accenture signed a single Microsoft 365 Copilot deal for over 740,000 seats, the largest Copilot agreement to date.
• Windows held a 63.66% share of the global desktop operating-system market in April 2026, according to Statcounter Global Stats.
• Microsoft’s stock-based compensation expense reached $11.97 billion in FY2025, up from $10.73 billion in FY2024.
• Microsoft returned $10.2 billion to shareholders in Q3 FY26 in the form of dividends and share repurchases.
• More than 60% of Fortune 500 companies have at least 10,000 Microsoft 365 Copilot seats.

Recent Developments

• April 29, 2026: Microsoft reported Q3 FY26 revenue of $82.9 billion (+18%) and disclosed the $37 billion AI run rate.
• April 29, 2026: Microsoft 365 Copilot crossed 20 million paid enterprise seats, with Bayer, Johnson & Johnson, Mercedes, and Roche each operating more than 90,000 seats.
• February 2026: Microsoft confirmed the Saudi Arabia East datacenter region will be available for customer workloads in Q4 2026, with three independent availability zones.
• January 28, 2026: Q2 FY26 results showed Microsoft Cloud revenue crossing $50 billion this quarter ($51.5 billion, +26%), with commercial RPO up 110% to $625 billion.
• October 29, 2025: Q1 FY26 Azure and other cloud services grew 40% YoY (39% in constant currency), with commercial RPO of $392 billion (+51%).
• July 30, 2025: Microsoft filed its FY2025 Form 10-K, confirming 228,000 full-time employees and $136.2 billion in cash from operations.

Microsoft Revenue and Financial Performance

• Q3 FY26 revenue of $82.9 billion grew 18% year-over-year, with operating income of $38.4 billion (+20%).
• Net income for the same quarter reached $31.8 billion on a GAAP basis (+23%), with diluted EPS of $4.27.
• Q2 FY26 revenue printed $81.3 billion (+17%), with GAAP net income of $38.5 billion (+60%) and non-GAAP net income of $30.9 billion (+23%).
• Q1 FY26 revenue came in at $77.7 billion (+18%), with operating income of $38.0 billion (+24%).
• Full-year FY2025 revenue totaled $281.7 billion, up from $245.1 billion in FY2024.
• FY2025 operating income reached $128.5 billion, with FY2025 net income of $101.8 billion and diluted EPS of $13.
• Annualizing Q3 FY26 revenue of $82.9 billion across Microsoft’s 228,000 full-time workforce yields revenue per employee of roughly $1.45 million.

Source: Microsoft Investor Relations FY26 Q1, Q2, Q3 and FY25 Q4 press releases.

By the numbers: Microsoft’s nine-month FY26 revenue stack, $77.7 billion + $81.3 billion + $82.9 billion = $241.9 billion through March 2026, already sits within $3.2 billion of FY2024’s full-year revenue, with one quarter still to report. The trajectory implies a full-year FY26 finish north of $320 billion even on conservative Q4 assumptions.

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Microsoft Cloud and Azure Growth

• Microsoft Cloud revenue reached $54.5 billion in Q3 FY26, up 29% year-over-year (25% in constant currency).
• Commercial remaining performance obligation climbed 99% year-over-year to $627 billion by the end of Q3 FY26.
• Azure and other cloud services grew 40% in Q3 FY26 (39% in constant currency).
• Q2 FY26 Microsoft Cloud revenue of $51.5 billion topped the $50 billion threshold for the quarter.
• Commercial remaining performance obligation grew 110% in Q2 FY26 to $625 billion.
• Q1 FY26 Microsoft Cloud revenue printed $49.1 billion (+26%), with commercial RPO of $392 billion (+51%).
• Trailing-three-quarter Microsoft Cloud revenue totals $155.1 billion, putting the segment on a roughly $200 billion annualized run rate.

Source: Microsoft Investor Relations FY26 Q1, Q2, Q3 press releases.

Why it matters: Microsoft Cloud printed $49.1 billion in Q1 FY26, $51.5 billion in Q2 FY26, and $54.5 billion in Q3 FY26, with commercial remaining performance obligation climbing 99% year-over-year to $627 billion by the end of March 2026, a roughly $200 billion annualized Cloud run rate.

Microsoft 365 Copilot and AI Business

• Microsoft’s AI business surpassed an annual revenue run rate of $37 billion in Q3 FY26, up 123% year-over-year, per Satya Nadella on the April 29, 2026, earnings call.
• Microsoft 365 Copilot has passed 20 million paid enterprise seats, up from 15 million seats disclosed in January 2026.
• The company has quadrupled the number of companies paying for over 50,000 Copilot seats.
• Bayer, Johnson & Johnson, Mercedes, and Roche each operate more than 90,000 Microsoft 365 Copilot seats.
• Accenture signed a Copilot deal covering over 740,000 seats, called “our largest Copilot win to date” by Nadella.
• Copilot queries per user were up nearly 20% quarter-over-quarter, with weekly engagement now matching Outlook; for context on competing AI assistant usage.
• More than 60% of Fortune 500 companies have at least 10,000 Microsoft 365 Copilot seats.

Source: Microsoft FY26 Q3 earnings call commentary and TechCrunch reporting (April 29, 2026).

Key finding: Accenture’s 740,000-seat deal is larger than the entire paid Copilot base from one quarter ago.

Productivity and Business Processes (M365, LinkedIn, Dynamics)

• Productivity and Business Processes revenue reached $35.0 billion in Q3 FY26, up 17% year-over-year (13% in constant currency).
• Microsoft 365 Commercial cloud revenue grew 19% in Q3 FY26 (15% in constant currency).
• Microsoft 365 Consumer cloud revenue grew 33% in Q3 FY26 (29% in constant currency).
• LinkedIn revenue grew 12% in Q3 FY26 (9% in constant currency).
• Dynamics 365 revenue grew 22% in Q3 FY26 (17% in constant currency).
• Full-year FY2025 Productivity and Business Processes revenue reached $120.8 billion, up from $106.8 billion in FY2024.
• LinkedIn revenue grew 11% in Q2 FY26.

Windows and Browser Market Share

• Windows held a 63.66% share of the global desktop operating-system market in April 2026, per Statcounter Global Stats.
• macOS held 8.19% of the desktop OS market, with Linux at 2.99% and Chrome OS at 1.51% in the same month.
• Microsoft Edge held 11.51% of the global desktop browser market in April 2026, the second-largest desktop browser behind Chrome.
• Chrome dominated desktop browsers at 71.56% in April 2026, with Safari at 6.17% and Firefox at 4.21%; Google Gemini is integrated into Chrome, potentially driving AI-assisted browsing adoption.
• Windows OEM and Devices revenue decreased 2% year-over-year in Q3 FY26 (down 3% in constant currency).
• Search advertising revenue excluding traffic acquisition costs grew 12% in Q3 FY26 (9% in constant currency).

Worth noting: Edge’s 11.51% desktop share is Microsoft’s only category-leading runner-up to a non-Microsoft incumbent on desktop.

Microsoft Gaming and Xbox

• Xbox content and services revenue decreased 5% year-over-year in Q3 FY26 (down 7% in constant currency).
• Q1 FY26 Xbox content and services revenue was up 1% year-over-year, beating expectations through Game Pass and third-party content growth.
• Q1 FY26 Xbox console sales were down approximately 29% year-over-year, reflecting the broader console-cycle decline.
• Overall gaming revenue was down 2% year-over-year in Q1 FY26, against a strong prior-year comparison. The prior-year baseline included Activision Blizzard ramp following the October 2023 close.

Source: Microsoft FY26 Q3 press release; Windows Central FY26 Q1 earnings summary.

Microsoft Workforce and Headcount

• Microsoft employed approximately 228,000 people on a full-time basis as of June 30, 2025, per its FY2025 Form 10-K.
• Of those, 125,000 were in the United States, and 103,000 were international employees.
• Approximately 89,000 total employees worked in operations, including product support, consulting services, and data center operations.
• Microsoft’s stock-based compensation expense reached $11.97 billion in fiscal year 2025, up from $10.73 billion in fiscal year 2024 and $9.61 billion in fiscal year 2023.
• Cash from operations climbed $17.6 billion in fiscal 2025 to $136.2 billion, primarily on increased cash received from customers.

The takeaway: Per-employee revenue near $1.45 million puts Microsoft in chip-designer productivity territory, alongside Google’s workforce data.

Azure Global Infrastructure

• Microsoft confirmed the Saudi Arabia East datacenter region will be available for customer workloads in Q4 2026, with three independent availability zones.
• Microsoft’s Saudi Arabia region announcement followed a December 2024 progress update on the Eastern Province facility.
• Microsoft launched new Azure datacenter regions in Malaysia and Indonesia in 2025, with new regions in India, South Central, and Taiwan planned for 2026, extending the total Azure region count past 70 globally.
• Microsoft’s Saudi Arabia East datacenter region will include three availability zones, each with independent power, cooling, and networking infrastructure.

Source: Microsoft Source EMEA (February 2026 announcement) and Azure global infrastructure documentation.

Common Questions

How fast is Azure growing in 2026?

Azure and other cloud services grew 40% year-over-year in Q3 FY26, matching the 40% it printed in Q1 FY26 and following a 39% Q2 FY26 print. In constant-currency terms, the three-quarter sequence reads 39%, 38%, 39%, flat at scale rather than decelerating, which Microsoft attributes to AI infrastructure demand running ahead of available capacity.

How many Xbox Game Pass subscribers does Microsoft have?

Microsoft stopped breaking out Game Pass subscriber counts after the Activision Blizzard close in October 2023; the last public figure was approximately 25 million.

Conclusion

Microsoft’s nine-month FY26 revenue stack reaches $241.9 billion, already within $3.2 billion of the company’s entire FY2024 result, with the AI business clearing a $37 billion annual run rate globally.