Microsoft's Commercial Backlog Nearly Doubles to $627 Billion

Earnings Impact 4
โดย 24/7 Wall St.·Read original
Summary · why it matters

Microsoft's commercial remaining performance obligations reached $627 billion in the third quarter of fiscal 2026, nearly doubling year over year, with roughly 25% expected to convert to revenue in the next twelve months. The company's AI business crossed an annual revenue run rate of $37 billion, up 123% year-over-year, while Azure grew 40% and Microsoft Cloud revenue hit $54.5 billion, up 29%. Operating cash flow in the quarter was $46.68 billion, up 26%, and the balance sheet held $32.11 billion in cash against a debt-to-equity ratio of 0.176. Shares have dropped 22% year to date to $372.97, trading at a forward price-to-earnings ratio of 19 times, with earnings per share of $4.27 beating the $4.07 consensus for the fourth straight quarter. CFO Amy Hood noted that most of the $30.88 billion in quarterly capital expenditures is pre-contracted for the infrastructure's useful life, addressing concerns about AI demand softening.

Impact on stocks 1

Artificial Intelligence▲ · 1 stocks
Microsoft Corporation
MSFT
▲ PositiveDemandrelevance

Commercial backlog nearly doubled to $627B and AI revenue run rate surged 123%, indicating strong end-customer demand for Microsoft's cloud and AI services.

Theme Impact 7

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