Microsoft Q2 Revenues Rise 17% to $81.3B While Shares Fall 7.3%
Microsoft’s Q2 fiscal 2026 non-GAAP EPS hit $4.14 and revenue rose 17% to $81.3 billion, led by 39% Azure growth and cloud segment topping $50 billion. Shares slid 7.3% post-report with high capex guidance, and Microsoft declined to join OpenAI’s $110 billion funding round valuing it at $730 billion.
1. Q2 Earnings Highlights
Microsoft’s fiscal Q2 non-GAAP EPS reached $4.14, up 24% year-over-year, with revenue of $81.3 billion, a 17% increase driven by Azure’s 39% growth and the cloud segment surpassing $50 billion for the first time.
2. Share Performance and Guidance
Despite beating both revenue and EPS estimates, Microsoft shares have tumbled 7.3% since the earnings release, reflecting investor concerns over guidance for sustained high capital expenditures and ongoing capacity constraints through the fiscal year-end.
3. OpenAI Funding Round Exclusion
Microsoft remains OpenAI’s largest backer but opted out of the $110 billion funding round that valued OpenAI at $730 billion, potentially diluting its relative share of the AI partner and reshaping future collaboration terms.