Overview
- Microsoft posted fiscal Q2 revenue up 17% with an EPS beat, and Azure and other cloud revenue grew 38% in constant currency.
- Guidance calls for Q3 revenue of $80.65–$81.75 billion and Azure growth of 37–38% in constant currency.
- Shares fell 10% on Jan. 28 and were down about 15% for 2026 through Feb. 16 as markets focused on heavier AI and data-center outlays and potential Azure growth deceleration tied to OpenAI exposure.
- Reuters reported Microsoft is on track to invest about $50 billion by decade-end to expand AI infrastructure and access across the Global South.
- Alphabet reported rapid Gemini uptake—over 750 million monthly users and more than 8 million paid Enterprise seats—and UBS estimates generative-AI spending could add $19–$23 billion in cloud revenue plus $5–$6 billion in ads during 2026–2027.