Archive · 30 Jan 2026
Microsoft Shares Fall Despite Strong Earnings
Microsoft, a big tech company, recently shared its financial results.
They made a lot of money, about $81.27 billion, which was more than people expected.
However, their cloud service, called Azure, didn't grow as much as last year, and they spent a lot of money, $37.5 billion, on things like improving their services.
One of their big investments is in a company called OpenAI, which helps them make more money.
Because of these results, their stock price went down by about 7%.
They also said they will raise the prices of some of their office software subscriptions.
Other tech companies like Meta and Tesla did better and saw their stock prices go up.
Microsoft's revenue of $81.27 billion surpassed expectations, but Azure's growth slowed to 38% from 39% last year.
Capital expenditure surged by 66% to $37.5 billion, exceeding analyst expectations.
Investments in OpenAI boosted EPS by $1.02, with OpenAI making up 45% of the $625 billion order backlog.
Microsoft announced price increases for commercial office productivity software subscriptions.
Shares fell 7% in extended trading following the earnings report.
- Who
- Microsoft Inc.
- What
- Reported strong earnings but saw shares fall due to spending concerns
- When
- Second quarter of fiscal 2026
- Where
- Global
- Why
- Investors concerned about high capital expenditure and slower Azure growth
- Revenue
- $81.27 billion
- EPS
- $5.16
- Azure Growth
- 38%
- Capital Expenditure
- $37.5 billion
- Customer Commitments
- $625 billion
- Stock Price Drop
- 7%
- OpenAI's Share of Backlog
- 45%
- Xbox Revenue Decline
- 9%
Sources
Microsoft's core cloud sales slow despite record spending; Stock falls over 5%
Microsoft shares slide as AI spending surges
Microsoft shares fall 7% after Q2 earnings over record AI spending – What’s worrying Wall Street?
Meta shares jump 11% as strong Q4 revenue supports record AI spending
Microsoft AI and cloud spending hits record $37.5B as Azure growth slows
Microsoft lost a combined RIL and TCS on Thursday in $357 billion rout
