Cloud and AI Drive 18% Surge in Quarterly Revenue

Microsoft Corporation (MSFT) reported revenue of $82.9 billion (approximately ₩112 trillion) in the third quarter of fiscal 2026, ended March, up 18 percent year-over-year. Fueled by growth in its cloud and artificial intelligence businesses, operating income rose 20 percent and net income increased 23 percent.

Microsoft’s cloud revenue climbed 29 percent to $54.5 billion (around ₩74 trillion), while its AI-related business expanded to an annualized revenue run rate of $37 billion (approximately ₩50 trillion). During the quarter, the company returned roughly $10 billion to shareholders through dividends and share repurchases.

Recently, Microsoft and OpenAI revised their exclusive cloud agreement so that Microsoft remains the primary partner while OpenAI may also use other providers such as Amazon Web Services and Google Cloud. This adjustment is likely to intensify competition among cloud vendors for generative AI infrastructure.

Known globally for Windows, Office and its Azure cloud platform, Microsoft has continued to make significant investments in generative AI products like Copilot and in its data-center infrastructure.

Major U.S. cloud and big-tech firms are expected to invest hundreds of trillions of won in AI infrastructure during 2026 alone, making competition for long-term growth and market share—rather than short-term profitability—the defining factor across the industry.