Microsoft Reports Q2 FY2026 Results Amid Stock Decline
Microsoft’s share price fell despite reporting strong fiscal Q2 2026 results on October 24, 2023. The company recorded total revenue of $81.3 billion, a 17% increase year-over-year, and adjusted earnings per share (EPS) of $4.14, surpassing analyst estimates of $80.3 billion and $3.97, respectively. The decline in stock price is largely attributed to higher operating expense guidance and concerns over its reliance on OpenAI.
Azure, Microsoft’s cloud computing unit, drove growth with a 39% rise in revenue, marking the 10th consecutive quarter of over 30% growth. Commercial bookings surged 230% due to significant commitments from OpenAI and Anthropic. Meanwhile, the productivity segment, which includes Microsoft 365 and LinkedIn, saw a revenue increase of 16%, amounting to $34.1 billion. The company projects Q3 revenue between $80.65 billion and $81.75 billion, compared to analyst projections of $81.19 billion.
