KEY POINT
- Microsoft’s Q2 revenue of $81.27 billion marks a 12.3 percent increase from the same period last year.
- Azure cloud revenue grew 39 percent, slightly below the first quarter growth of 40 percent.
- Shares fell 4 percent in extended trading due to slowing cloud expansion despite overall strong results.
Redmond, Washington — Jan. 29, 2026 — Microsoft Corp. posted stronger than expected financial results for the second quarter of its fiscal year, reinforcing investor confidence in its artificial intelligence (AI) strategy despite recent market anxieties.
The technology giant reported revenue of $81.27 billion, surpassing analyst expectations of $80.32 billion, while earnings per share came in at $4.14, above the projected $3.92.
Microsoft’s results underscore the company’s continued leadership in enterprise AI, including tools such as Microsoft 365 Copilot.
CEO Satya Nadella highlighted that Microsoft is “only at the beginning phases of AI diffusion,” with AI revenue already surpassing some of the company’s long-standing franchises.
Microsoft has been a major beneficiary of the AI boom, with its market capitalization reaching $4 trillion six months ago.
Alongside Alphabet, Amazon, and Meta, Microsoft is part of a group projected to spend $505 billion on AI infrastructure in 2026, up from $366 billion in 2025.
While investor sentiment has recently cooled, Microsoft has consistently exceeded Wall Street expectations for two years.
“Microsoft remains the clear front-runner in enterprise hyper scale AI despite rising competition,” said Dan Ives, managing director at Wedbush Securities. “The company’s ability to integrate AI across productivity and cloud services positions it well for sustained growth.”
Industry analyst Nicole Peng of Canalys added, “Azure’s near capacity order book reflects strong demand, although competition from Amazon and Anthropic is intensifying.”
| Metric | Q2 FY 2026 | Q2 FY 2025 | YoY Change |
|---|---|---|---|
| Revenue | $81.27B | $72.35B | +12.3% |
| Earnings per Share | $4.14 | $3.68 | +12.5% |
| Azure Revenue Growth | 39% | 36% | +3pp |
Amy Hood, Microsoft CFO, said, “Microsoft Cloud revenue crossed $50 billion this quarter, reflecting strong demand across our portfolio of services.”
An enterprise IT manager at a Fortune 500 firm, Joseph Ramirez, noted, “AI tools from Microsoft are improving productivity without adding work hours, which is a game changer for our teams.”
While cloud growth is showing signs of slowing, analysts emphasize Microsoft’s long term AI strategy and infrastructure investment as a buffer against near-term volatility.
Experts expect continued enterprise adoption of AI tools to drive both software and cloud revenue growth over the next several years.
Microsoft’s earnings reaffirm its position as a leader in AI-driven enterprise solutions, balancing investor skepticism with consistent revenue performance.
The company’s integration of AI across its cloud and productivity services signals sustained influence in shaping global enterprise technology.
- What are Microsoft’s latest AI financial results?
Microsoft reported Q2 revenue of $81.27B and earnings of $4.14 per share, driven by Azure and 365 Copilot AI growth. - How much did Azure cloud revenue grow?
Azure revenue increased 39 percent year-on-year in Q2 2026. - Is Microsoft leading in enterprise AI?
Yes, Microsoft remains a top enterprise AI leader, with strong adoption across cloud and productivity tools.