Analyst Remains Bearish on Microsoft Despite Strong Q3 Earnings

Microsoft reported solid fiscal Q3 2026 results, with revenue up 18% YoY, operating income +20%, and AI business hitting a $37 billion annual run rate (up 123%). However, Azure's 39% constant-currency growth lagged peers like Google Cloud's 63% and showed minimal acceleration, fueling caution. The analyst flags AI risks to Office economics and a weakening moat from ending OpenAI exclusivity, preferring Alphabet and Amazon amid $190B capex plans.