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Microsoft’s Blowout Quarter Meets Jitters Over AI Capex and OpenAI Exposure

Guidance points to brisk Azure growth with capacity still tight.

Overview

  • Fiscal Q2 revenue rose 17% to $81.3 billion with earnings per share of $4.14, topping expectations.
  • Capital expenditures reached $37.5 billion, with roughly two-thirds directed to short‑lived AI chips and other datacenter gear.
  • Remaining performance obligations totaled about $625 billion, with roughly $281 billion tied to OpenAI contracts that heighten concentration risk.
  • Management guided Azure growth to about 37%–38% next quarter and noted ongoing supply constraints as AI demand outstrips current capacity.
  • Shares fell nearly 10% after the outlook even as AI adoption accelerated, including 15 million paid Microsoft 365 Copilot seats and 4.7 million GitHub Copilot subscribers.