By Matthew Benjamin, The Motley Fool
Publication Date: 2026-02-02 13:35:00
Investors were disappointed in the return on Microsoft’s AI spending last quarter.
The share price of Microsoft (MSFT 0.23%) cratered last week — down 11% on Thursday, the largest one-day drop in the tech giant’s stock since March 2020. Shares rebounded a tiny bit in the afternoon to end 10% down on the day. What’s going on? And what should investors expect now?
Today’s Change
(-0.23%) $-0.99
Current Price
$429.30
Microsoft released results Thursday morning for its fiscal second quarter, ended Dec. 31, 2025. Based on the headline numbers, you would have expected a great reaction from Wall Street. Revenue of $81.3 billion in the quarter was up 17% from a year ago. Diluted earnings per share increased 60% to $5.16. Operating income grew 21% to $38.3 billion. Both sales and earnings figures exceeded consensus analyst expectations.
