Microsoft has reported better-than-expected quarterly results and told investors that capital expenditures for the year will reach $US190 billion due to soaring memory costs.

Microsoft's revenue grew 18 per cent year over year for the third quarter, which ended on March 31, according to a statement.

The tech giant's net income of $US31.78 billion, was up from $US25.82 billion, in the same quarter a year earlier. Adjusted earnings exclude a $US14 million decrease in net income from Microsoft's OpenAI investments.

Microsoft's cloud-computing unit posted 40 per cent revenue growth in the January-March quarter, matching consensus estimates.

Microsoft Cloud revenue reached $US54.5 billion overall - a rise 29 per cent year-over-year.

Microsoft's Productivity and Business Processes segment, which includes Office productivity software, LinkedIn and Dynamics business software, totalled $US35 billion in revenue.

Microsoft's More Personal Computing unit, which includes the Windows operating system, Xbox, Surface devices and Bing search advertising, contributed $US13.19 billion in revenue, down one per cent.

Sales of Windows licences to device makers and Microsoft's own devices were down two per cent.

With respect to guidance, Microsoft's finance chief, Amy Hood, called for $US86.7 billion to $US87.8 billion in fiscal fourth-quarter revenue.

In forecasting $US190 billion in capex for 2026, Hood said she anticipates a $US25 billion impact from higher component prices.

Microsoft foresees Azure cloud growth between 39 per cent and 40 per cent.

Microsoft's headcount will go down year over year in the 2027 calendar year.

"We continue to evolve how we operate, to increase our pace and agility," Hood said.