Microsoft Q2 2026 Earnings: Cloud Growth Concerns Offset Strong Financials
Microsoft reported $81.3 billion in revenue for Q2 2026, a 17% year-over-year increase, surpassing analyst estimates by $1 billion. Adjusted earnings per share reached $4.14, beating expectations of $3.97, while GAAP net income surged 60% to $38.5 billion. Despite these results, shares fell 3% in after-hours trading as investors focused on slowing cloud growth.
The company's OpenAI investment, which previously weighed on earnings, contributed $7.6 billion in value this quarter. CEO Satya Nadella emphasized Microsoft's early leadership in AI, noting its AI business now surpasses some legacy franchises. Commercial remaining performance obligations doubled to $625 billion, signaling strong future revenue visibility.