Microsoft, AI revenue 123% growth, while its stock is down 13% since the start of the year
Microsoft 2026year 3quarter revenue rose 18% and net income increased 23%. Revenue from its AI business rose 123%, bringing its annualized revenue run rate to 370 billion dollars. Its stock is down 13% since the start of the year, and its P/E ratio is 25 times.
Microsoft’s stock is down 13% since the start of the year. Its current share price is trading at 25 times earnings (P/E of 25 times). The P/E ratio indicates how many times earnings a stock is priced at.
The company’s 2026 year 3quarter revenue increased 18% year over year. Net income rose 23% over the same period. According to the report, growth in revenue was led by Microsoft Cloud and its artificial intelligence business.
Revenue from the artificial intelligence business rose 123% year over year. The business’s annualized revenue run rate is 370 billion dollars. The company said it is offering agentic AI products to enterprise customers and that adoption is increasing.
Agentic AI refers to software agents that automatically perform scheduled tasks. Annualized revenue is a figure based on recent quarterly results, converted to 1years. The company said it is expanding the technology into enterprise solutions.
Some analyses cited the share-price decline since the start of the year and a P/E ratio of 25times to assess the stock as a buying opportunity at present. The same analyses noted that enterprise adoption of agentic AI could lead revenue growth in coming quarters to 20% or more. This assessment was based on reported results and AI revenue figures.
The company disclosed the relevant figures in its quarterly report. They were calculated based on the quarterly report and market prices. The trend in AI revenue is expected to be disclosed in the next quarterly results.
Sources: The Motley Fool
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