Microsoft remains a strong buy after Q3 revenue grows 18% driven by cloud and productivity segments.

Microsoft reported strong Q3 results with revenue up 18% year-over-year to $83 billion and operating income rising 20%, fueled by robust cloud and productivity segments. The company is shifting its business model from per-seat licensing to a seats-plus-consumption approach and expanding its partnership with OpenAI, which reduces risks and opens new growth opportunities. Trading at 24 times FY26 and 21 times FY27 earnings, Microsoft offers attractive long-term returns with sustained double-digit growth potential. Despite minor segmental weaknesses, the stock remains a compelling buy for investors seeking growth and value.