Microsoft's biggest transformation story used to revolve around cloud computing. By migrating enterprises from on-premise software to subscription services and hyperscale infrastructure, the Redmond, Washington-based tech giant in many senses rewired corporate infrastructure from the ground-up, or the cloud-down.
Investors focused on the balance between AI spending and AI revenue wanted more juice from Microsoft's cloud business in the latest quarter.
Although the revenue and EPS for Microsoft (MSFT) give a sense of how its business performed in the quarter ended December 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Microsoft (MSFT) came out with quarterly earnings of $4.14 per share, beating the Zacks Consensus Estimate of $3.88 per share. This compares to earnings of $3.23 per share a year ago.
Microsoft and OpenAI may have a notoriously rocky relationship but as OpenAI experiences never-before-seen revenue growth, Microsoft, one of its major investors, is benefiting greatly.
Microsoft released second-quarter earnings on Wednesday, reporting $81 billion in revenue. CFO Amy Hood sent an internal memo about the results, viewed by Business Insider.
The company said on Wednesday that revenue in the most recent quarter was $81.3 billion, but its share price dropped more than 5 percent in after-hours trading.
Microsoft Corp (NASDAQ:MSFT) shares plummeted as much as 7% afterhours as heightened cloud expectations overshadowed better-than-expected revenue and profit for the fiscal second quarter. Revenue for the quarter ended December 31 grew 17% year-over-year to $81.27 billion, above Wall Street estimates of $80.27 billion.
The company reported strong growth in Azure cloud-computing segment and an earnings-per-share boost from OpenAI deal
Microsoft topped quarterly revenue expectations for its crucial cloud-computing business on Wednesday, signaling that its hefty spending on artificial intelligence was paying off, easing worries about intensifying competition.
AI spending and advancements have accelerated over the last few years, subsequently giving rise to the “Magnificent Seven," or Nvidia (NVDA), Microsoft (MSFT), Apple (AAPL), Alphabet (GOOGL), Amazon.com (AMZN), Meta Platforms (META), and Tesla (TSLA).
Microsoft is scheduled to report its latest quarterly results after the market closes on Wednesday, with traders anticipating a big move in the tech giant's stock following the results.