Microsoft outlines Q4 revenue of $86.7B-$87.8B as it expects 2026 capex of roughly $190B

Microsoft reported a record third quarter driven by AI and Microsoft Cloud, which exceeded $54 billion in revenue, up 29% year-over-year. Management provided Q4 revenue guidance of $86.7 billion to $87.8 billion and signaled 2026 capital expenditures of roughly $190 billion, prompting investor questions about CapEx growing faster than revenue. Executives defended the spending as capacity build tied to strong and anticipated demand and highlighted a shift toward per-user and consumption-based monetization for AI and cloud products. Overall, the results and cloud/AI momentum are market-positive, but elevated CapEx guidance may temper near-term sentiment as investors weigh growth versus investment intensity.