Is Microsoft Corp (MSFT) Stock More Enticing After FYQ3 Report?

Microsoft Corp (NASDAQ:MSFT) is one of the best stocks to buy in 2026 according to billionaire George Soros. Microsoft Corp (NASDAQ:MSFT) released its fiscal Q3 2026 (ended March 31) report on April 29. It reported an 18% YoY increase in revenue to $82.9 billion, supported by strong growth in the cloud business. That was more than Street expectations of $81.39 billion.

Is Microsoft Corp (MSFT) Stock More Enticing After FYQ3 Report?

Ken Wolter / Shutterstock.com

Microsoft’s cloud revenue soared 29% YoY to $54.5 billion, and there’s more to come. The company reported that the commercial remaining performance obligation in its cloud business increased 99% to $627 billion. This is how much the company expects to earn from its existing contracts and customers. The company also reported strong performance in its AI business, which grew 123% YoY and exceeded an annual run rate of $37 billion.

Microsoft’s net income rose 23% YoY to $31.8 billion in the quarter. That translates to EPS of $4.27, which surpassed the Street’s expectation of $4.06.

During the March quarter, the company returned $10.2 billion to shareholders in a combination of dividends and share repurchases. It exited the quarter with $32 billion in cash and cash equivalents.

Microsoft Corp (NASDAQ:MSFT) is an American multinational technology company based in Redmond, Washington. Best-known for its Windows software and Office productivity suite, Microsoft has developed a diversified tech business that includes cloud computing services and consumer hardware.

While we acknowledge the risk and potential of MSFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MSFT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: Top 10 Undervalued REIT Stocks to Buy Now and 11 Best Japanese Stocks to Buy Right Now.

Disclosure: None. Follow Insider Monkey on Google News.