Corporate Earnings Highlights
Microsoft’s fiscal second quarter of 2026, ending December 31, 2025, reported a 17% year-over-year revenue increase to $81.3 billion, with adjusted earnings per share rising 24% to $4.14. Notably, Microsoft’s intelligent cloud segment, including Azure, generated $32.9 billion, a 29% increase, while capital expenditures surged to $37.5 billion as the company invests in data centers to meet AI demand.
Conversely, Broadcom’s fiscal first quarter of 2026 ended February 1, 2026, demonstrated explosive growth with a record revenue of $19.3 billion, up 29%. The company’s AI semiconductor revenue skyrocketed 106% year-over-year to $8.4 billion. Broadcom anticipates a fiscal second-quarter revenue of approximately $22 billion, suggesting a potential 47% year-over-year growth, alongside a forecasted 140% jump in AI semiconductor revenue to $10.7 billion.
As of now, Microsoft’s stock has seen a decline of over 12% in 2026, while Broadcom has enjoyed a 22% increase, highlighting a stark contrast in their market performance amidst the AI boom.
