Microsoft’s AI revenue run rate has reached $37 billion, with Azure growing 40% and a contracted backlog hitting $627 billion. Ahead of its fiscal fourth-quarter earnings report for the quarter and fiscal year ended June 30, to be reported on or around July 29, MSFT stock must clear $394.63 to target the $408 to $422 region. In the last reported quarter ended March 31, 2026, revenue grew 18% year over year to $82.9 billion, operating income climbed 20% to $38.4 billion, GAAP net income increased 23% to $31.8 billion, and diluted earnings were $4.27 per share. Microsoft Cloud increased 29% to $54.5 billion, representing roughly two-thirds of total revenue. Through the first nine months of fiscal 2026, Microsoft earned $241.8 billion in revenue, an 18% increase. Intelligent Cloud revenue climbed 30% to $34.7 billion, mainly due to 40% growth in Azure and other cloud services. For the fiscal fourth quarter, Microsoft expects Azure growth of 39% to 40% in constant currency.