Microsoft (MSFT) Reports 18% Revenue Growth, Stock Drops 5%

Microsoft's (MSFT) fiscal Q3 revenue increased 18% year over year to $83 billion, and operating income rose 20%. However, the stock fell about 5% the following trading day and is down approximately 14% year to date, priced around $413. The commercial backlog was reported at $627 billion, a 99% increase from the previous year, but only a $2 billion gain from the prior quarter. Moreover, commercial bookings, excluding OpenAI contributions, grew just 7%, and Azure's growth rate showed minimal change, indicating potential concerns over broader demand.