Microsoft is set to report fiscal Q3 results, with analysts forecasting revenue of $81.4 billion, up 16% from a year ago, and earnings per share of $4.06, up 17%. The cloud unit Azure is expected to grow 37‑38% in constant currency, a slight slowdown from the 38% posted in Q2. After a 10% stock drop wiped out $357 billion in market value, investors focused on the company’s $37.5 billion in capital spending and a 3.3% adoption of Copilot. The firm has been trimming costs while ramping AI infrastructure, offering voluntary retirement to thousands and flattening management layers. Analysts also note that Azure growth could exceed 40% if all GPUs were dedicated to the cloud, and that capex is on pace to surpass $100 billion in FY26, up from $88.7 billion. Copilot has 15 million paid seats, 3.3% of a 450 million Microsoft 365 commercial base, priced at $30 per user per month. Contracted future revenue hit $625 billion, 45% tied to OpenAI, yet grew 28% after stripping OpenAI and new contracts surged 228%. Amy Hood said that if all GPUs were allocated to Azure, growth would exceed 40%. Satya Nadella introduced a new metric, “tokens per watt per dollar,” noting that Microsoft was able to process 50% more OpenAI workload on the same infrastructure. Wedbush analyst Dan Ives argued that the market is underestimating cloud growth, citing $650 billion AI infrastructure spending in 2026 and $3 trillion enterprise AI spend over three years.