Microsoft released its FY26 Q2 earnings on January 28, 2026, reporting revenue of $81.3 billion, up 17 percent year-over-year. Operating income reached $38.3 billion, up 21 percent. Net income on a GAAP basis was $38.5 billion, up 60 percent, with diluted earnings per share of $5.16, also up 60 percent. Microsoft Cloud revenue crossed $50 billion in the quarter. CEO Satya Nadella stated the company has built an AI business larger than some of its biggest franchises. CFO Amy Hood noted the company exceeded expectations across revenue, operating income, and earnings per share. Additionally, Microsoft announced a $50 billion investment commitment in AI infrastructure in the Global South by decade's end and expanded partnerships including CrowdStrike Falcon availability on Microsoft Marketplace and 5G integration with Windows 11 and Ericsson.
Read full analysisMicrosoft released its FY26 Q2 earnings on January 28, 2026, reporting revenue of $81.3 billion, up 17 percent year-over-year. Operating income reached $38.3 billion, up 21 percent. Net income on a GAAP basis was $38.5 billion, up 60 percent, with diluted earnings per share of $5.16, also up 60 percent. Microsoft Cloud revenue crossed $50 billion in the quarter. CEO Satya Nadella stated the company has built an AI business larger than some of its biggest franchises. CFO Amy Hood noted the company exceeded expectations across revenue, operating income, and earnings per share. Additionally, Microsoft announced a $50 billion investment commitment in AI infrastructure in the Global South by decade's end and expanded partnerships including CrowdStrike Falcon availability on Microsoft Marketplace and 5G integration with Windows 11 and Ericsson.
Microsoft is one of the world's largest technology companies, generating revenue from cloud computing (Azure), productivity software (Office 365), and enterprise services. The company is on pace to spend roughly $100 billion annually on AI infrastructure — including a partnership guaranteeing it 20% of OpenAI's revenue through 2032 — spending that has driven the stock down about 17% year-to-date as investors demand proof of returns. That AI capex skepticism, reinforced by Bridgewater's estimate of $650 billion in collective Big Tech AI spending for 2026, remains the central force behind the stock's persistent weakness.