Microsoft shows gain on OpenAI investment after restructuring as cloud growth slows

Microsoft shares fell 7% in extended trading on Wednesday after the software maker issued quarterly results that were healthier than analysts had anticipated.

Here’s how the company performed in comparison with LSEG consensus:

* **Earnings per share:** $4.14 adjusted vs. $3.97 expected
* **Revenue:** $81.27 billion vs. $80.27 billion expected

Microsoft’s revenue grew 17% year over year in the fiscal second quarter, which ended on Dec. 31, according to a statement.

Net income, at $38.46 billion, or $5.16 per share, was up from $24.11 billion, or $3.23 per share, in the same quarter a year earlier. Adjusted earnings exclude impact from investments in OpenAI.

The company reported $9.97 billion in other income, compared with other expense of $2.29 billion in the same quarter a year ago. The swing comes three months after OpenAI announced a restructuring that involved its for-profit arm becoming a public-benefit corporation.

Revenue from Azure and other cloud services grew 39%, compared with 40% growth in the fiscal first quarter. Analysts surveyed by StreetAccount and CNBC had expected 39.4% and 38.9% growth from Azure and other cloud services.

Source: [https://www.cnbc.com/2026/01/28/microsoft-msft-q2-earnings-report-2026.html](https://www.cnbc.com/2026/01/28/microsoft-msft-q2-earnings-report-2026.html)