Overview
- The stock fell as much as 11% intraday and closed about 10% lower, marking its biggest one-day drop since March 2020.
- Microsoft reported fiscal Q2 revenue of $81.3 billion, up 17%, with EPS of $5.16, up 60%, and operating income up 21% to $38.3 billion, all ahead of estimates.
- Capital expenditures jumped 66% year over year to $37.5 billion, topping the $36.2 billion analysts expected.
- Azure revenue grew 38%, a deceleration from the prior quarter, and Microsoft guided current-quarter growth to 37%–38%, which some investors viewed as too cautious.
- Meta raised its sales guidance to $53.5 billion–$56.5 billion and its shares surged more than 10%, underscoring divergent market reactions across Big Tech.