Microsoft’s Q2 2026 Earnings Impact Stock Price
On October 26, 2023, Microsoft (NASDAQ: MSFT) reported a substantial 60% year-over-year increase in profits and a 17% rise in revenue for Q2 2026, generating $51.5 billion in cloud revenue, a 26% growth. Despite these positive figures, the company’s stock price dropped by 10%, erasing $357 billion from its market capitalization.
Concerns from analysts include slower growth in Microsoft’s cloud computing segment and a 65% increase in spending on AI data centers, totaling $37.5 billion. The company’s price-to-earnings ratio now sits at its lowest level in three years. However, Microsoft maintains a strong position in AI, receiving $7.6 billion from its partnership with OpenAI and reaching 4.7 million subscribers for its AI assistant Copilot.
