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Dec 31, 2025
Microsoft Q2 2026 Earnings Report
Microsoft posted strong results with double-digit growth across revenue, operating income, and net income.
Key Takeaways
Microsoft delivered a robust Q2 FY26, driven by strong cloud performance and continued AI momentum, with Microsoft Cloud revenue surpassing $50B.
Revenue reached $81.3B, up 17% YoY.
GAAP Net Income was $38.5B, boosted by gains from OpenAI investments.
Microsoft Cloud revenue surpassed $50B, increasing 26%.
Diluted EPS grew to $5.16, up from $3.23 a year ago.
Revenue by Segment
Forward Guidance
Microsoft will share forward-looking guidance during its earnings call and webcast.
Positive Outlook
- Strong demand for AI-powered services
- Microsoft Cloud exceeded $50B in revenue
- Commercial RPO increased 110% YoY
- Exceeded expectations in revenue, operating income, and EPS
- AI now a larger business than some core franchises
Challenges Ahead
- More Personal Computing revenue declined 3% YoY
- Xbox content and services revenue dropped 5%
- Search and news advertising growth slower compared to cloud segments
- Decline in short-term unearned revenue
- Cash and equivalents decreased from prior quarter
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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