Our quarter ending March 2026 delivered total revenue of $82.9 billion, up 18% year‑over‑year and 15% in constant currency. Operating income rose to $38.4 billion, up 20%, and net income to $31.8 billion, up 23%; the layer up from infrastructure, Microsoft Cloud, hit $54.5 billion, up 29%, at a 66% gross margin—down from 69% and guided to roughly 64% next quarter as AI scaling compresses margins. Azure grew 40% (39% constant) with demand still exceeding capacity, and the margin path under inference load is falling as the AI fleet scales, so we guide it lower again next quarter.
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