Microsoft stock slips despite positive quarter

Microsoft beat consensus on fiscal Q2 earnings by 5%.
Microsoft beat Q2 revenue consensus by 1%.
Intelligent Cloud revenue rose 29% YoY to $32.9 billion.

Clay Webster FXStreet

Microsoft (MSFT) stock dipped 4% afterhours on Wednesday despite offering a solid beat for the fiscal second quarter of 2026. For the quarter ending in December, Microsoft earned $4.14 in adjusted earnings per share (EPS) on revenue of $81.3 billion. The EPS figure beat by $0.22, while the revenue figure rose 17% YoY and topped consensus by $1 billion.

Microsoft Cloud revenue came in at $51.5 billion, up 26% YoY.

Sales in Productivity & Business Processes was $34.1 billion, up 16% YoY.

Revenue in Intelligent Cloud was $32.9 billion, up 29% YoY, which includes the "Azure and other cloud services" segment that saw sales increase 39% in that time frame.

Revenue in More Personal Computing arrived at $14.3 billion, down 3% YoY, owing especially to a decline in Xbox revenue.

Microsoft increased its dividends and share repurchases by 32% YoY to $12.7 billion.

Microsoft MSFT daily stock chart — MSFT daily stock chart

Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

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