Microsoft shows gain on OpenAI investment after restructuring as cloud growth slows

Tech

Microsoft shows gain on OpenAI investment after restructuring as cloud growth slows

Published Wed, Jan 28 2026

12:00 PM EST

Updated 1 Min Ago

Jordan Novet @in/jordannovet/WATCH LIVE

Key Points

Microsoft beat consensus on the top and bottom lines.
The analyst conference call starts at 5:30 p.m. ET.

In this article

MSFT

Follow your favorite stocks

CREATE FREE ACCOUNT

Microsoft CEO Satya Nadella speaks at the World Economic Forum in Davos, Switzerland, on Jan. 20, 2026.

Krisztian Bocsi | Bloomberg | Getty Images

Microsoft shares fell 7% in extended trading on Wednesday after the software maker issued quarterly results that were healthier than analysts had anticipated.

Here's how the company performed in comparison with LSEG consensus:

Earnings per share: $4.14 adjusted vs. $3.97 expected
Revenue: $81.27 billion vs. $80.27 billion expected

Microsoft's revenue grew 17% year over year in the fiscal second quarter, which ended on Dec. 31, according to a statement.

Net income, at $38.46 billion, or $5.16 per share, was up from $24.11 billion, or $3.23 per share, in the same quarter a year earlier. Adjusted earnings exclude impact from investments in OpenAI.

The company reported $9.97 billion in other income, compared with other expense of $2.29 billion in the same quarter a year ago. The swing comes three months after OpenAI announced a restructuring that involved its for-profit arm becoming a public-benefit corporation.

Revenue from Azure and other cloud services grew 39%, compared with 40% growth in the fiscal first quarter. Analysts surveyed by StreetAccount and CNBC had expected 39.4% and 38.9% growth, respectively.

Microsoft shows gain on OpenAI investment after restructuring as cloud growth slows

Microsoft shows gain on OpenAI investment after restructuring as cloud growth slows

Read more CNBC tech news