After restructuring Microsoft:

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

• Microsoft beat consensus on the top and bottom lines.
• The analyst conference call starts at 5:30 p.m. ET.

• Microsoft shares slipped 3% in extended trading on Wednesday after the software maker posted slowing cloud growth.

  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
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  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.

  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, respectively.

  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.

  At year end, Microsoft’s commercial remaining performance obligation, a measurement of unearned revenue and amounts that will be recognized as revenue later, stood at $625 billion, up some 110%. That’s thanks to OpenAI’s $250 billion cloud commitment with Microsoft during the quarter. Microsoft said 45% of commercial remaining performance obligation is tied to OpenAI. 

  Commercial bookings growth, which tracks quarterly activity, surged to 230% from 112% in the fiscal first quarter.

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  https://www.cnbc.com/2026/01/28/microsoft-msft-q2-earnings-report-2026.html?__source=iosappshare%7Ccom.apple.UIKit.activity.CopyToPasteboard