Microsoft Q2 2026 Earnings Top Expectations at $81.3B Revenue

Microsoft Corporation reported strong results for its fiscal second-quarter 2026 on January 28, exceeding analyst expectations with revenue of $81.3 billion and earnings per share of $4.14. The software giant, headquartered in Redmond, Washington, saw its shares decline nearly 19 percent year to date through early 2026, underperforming the S&P 500's roughly 3 percent drop, as investors weighed the benefits of accelerating artificial intelligence demand against escalating infrastructure costs.

The earnings highlighted robust growth across key segments. Microsoft Cloud revenue surpassed $50 billion for the first time, rising 26 percent from the prior year, driven by demand for AI-powered tools. Chief Executive Satya Nadella noted during the earnings call, "Microsoft Cloud surpassed $50 billion in revenue for the first time, up 26 year-over-year, reflecting the strength of our platform and accelerating demand." Adoption of generative AI products also surged, with paid seats for Microsoft 365 Copilot reaching 15 million, a more than 160 percent increase year over year, and GitHub Copilot subscribers climbing 75 percent to 4.7 million. Overall, revenue grew 16.7 percent from the...