Microsoft reported strong fiscal Q2 2026 results, with revenue of $81.3 billion and adjusted EPS of $4.14 both exceeding estimates, yet the stock cratered nearly 12% in early trading.
- Cloud revenue reached $51.5 billion (+26%), contributing significantly to the overall 17% year-over-year revenue growth.
- Investor concerns centered on the elevated $37.5 billion capital expenditure planned for AI infrastructure and the significant 45% dependency on the OpenAI backlog.
- Guidance for Azure growth of 37-38% met expectations but lacked upside, signaling potential risks regarding the return on investment for the massive capex spending.