Microsoft reported revenue of about $83 billion in fiscal Q3 2026 (the quarter ended March 31, 2026), up 18% year over year and marking a record quarter for the company. Because Microsoft’s fiscal year runs from July through June, this period corresponds to what many peers report as calendar Q1 2026.
The company also disclosed roughly $32 billion in capital expenditures during the quarter, a 49% increase from a year earlier, reflecting heavy investment in cloud and AI infrastructure.
Looking ahead, Microsoft expects total capital expenditures to reach about $190 billion for calendar year 2026, signaling a change in spending relative to recent years.
To support this buildout, Microsoft is rapidly expanding its data center footprint, deploying millions of servers supported by custom networking and security hardware. Its new Maya 200 AI accelerator is designed to process more “tokens,” the small units of data that AI models read and generate, and is already live in data centers in Iowa and Arizona. The company’s Cobalt server CPU has now been deployed in nearly half of its data center regions, running large-scale workloads for customers such as Databricks, Siemens, and Snowflake.
At RBN, AI and data centers are major topics because of their exceptionally high electricity demand, which raises critical questions about how that power is supplied and what it means for natural gas and alternative‑energy markets. For a deeper dive into the data‑center build‑out and its energy implications, see our Drill Down Report, “Go Speed Racer Go.”
