Investors who were hoping for an opportunity to buy the dip in Microsoft Corp. NASDAQ: MSFT stock are likely to be disappointed. MSFT stock fell just over 2% in after-hours trading following the company's third-quarter earnings report.
Fears that artificial intelligence investments have been overhyped sent the tech-heavy Nasdaq down 1.2% by approximately 2:45 p.m. ET.
MSFT's first-quarter fiscal 2026 results reflect strength in the AI business and Copilot adoption. The company's Azure cloud business recorded growth of 40%.
Microsoft Corp (NASDAQ:MSFT) drew praise from analysts at Wedbush and Jefferies following its fiscal first quarter 2026 earnings report, with both firms highlighting AI-driven growth, robust cloud adoption, and operational strength as key drivers for investor confidence.' Wedbush maintained an ‘Outperform' rating with a 12-month price target of $625, emphasizing that Microsoft's results mark the next stage of AI adoption.
Microsoft CEO Satya Nadella talked up the “fungibility” of its technology in response to concerns about an AI overbuild.
Microsoft shares decreased 2.2% to around $529.40 after reporting better-than-expected quarterly results on Wednesday. Microsoft posted earnings per share of $4.13 and revenues totaling $77.6 billion, surpassing forecasts of $3.67 and $75.4 billion, according to FactSet.
GOOGL, MSFT and META ramp up multibillion-dollar AI infrastructure spending as cloud and data center demand accelerates.
Microsoft said on Wednesday they are investigating an issue in which Microsoft 365 Cloud and Office.com were reported to be inaccessible.
Microsoft Corporation ( MSFT ) Q1 2026 Earnings Call October 29, 2025 5:30 PM EDT Company Participants Jonathan Neilson - Vice President of Investor Relations Satya Nadella - Chairman & CEO Amy Hood - Executive VP & CFO Conference Call Participants Keith Weiss - Morgan Stanley, Research Division Brent Thill - Jefferies LLC, Research Division Mark Moerdler - Sanford C. Bernstein & Co., LLC.
Microsoft reported a massive spike in its spending as the tech giant works to meet booming demand for artificial intelligence.
While the top- and bottom-line numbers for Microsoft (MSFT) give a sense of how the business performed in the quarter ended September 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Microsoft's Q1 revenue hit $77.7 billion, surpassing Wall Street expectations. The earnings release followed an Azure outage and a new deal with OpenAI.