By Daniel Howley
Publication Date: 2026-01-28 21:08:00
Microsoft (MSFT) reported its second quarter earnings after the bell on Wednesday, beating Wall Street estimates on the top and bottom lines, with cloud revenue topping $50 billion for the first time.
The company’s stock fell more than 4% on the news.
“We are only at the beginning phases of AI diffusion, and already Microsoft has built an AI business that is larger than some of our biggest franchises,” CEO Satya Nadella said in a statement.
“We are pushing the frontier across our entire AI stack to drive new value for our customers and partners.”
Microsoft is one of the biggest beneficiaries of the AI explosion, thanks to its early investments in ChatGPT developer OpenAI, sending its market capitalization above the $4 trillion mark in July. But it’s come down from those highs as investors continue to raise concerns about the AI industry’s massive spending.
In Q2, earnings per share (EPS) of $5.16 on revenue of $81.27 billion topped the $3.92 and $80.3…
