Microsoft’s profit jumps 32% despite big increase in spending
It spent US$45.2 billion on capital expenditures in the three months that ended in September.
Microsoft reported a 32% increase in profit, reaching $36.6 billion, in the third quarter of 2026, despite spending 30% more on capital expenditures. The company's cloud computing service, Azure, saw a 48% increase in sales to $33.2 billion. Microsoft expects Azure's growth to accelerate to between 49% and 50% in the current quarter.
The company added 24 data centers across five continents during the quarter, driven by increasing demand. Microsoft also offered buyouts to about 60,000 workers, roughly a quarter of its workforce. Despite the increased spending on AI, Microsoft's free cash flow remained positive at $18.6 billion.
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