Microsoft Stock Dips After Q2 Earnings Miss Cloud Revenue Estimates
Key Points:
* Miss: Intelligent Cloud revenue fell short of expectations, rising only 19% to $25.54 billion.
* Earnings Beat: Net income totaled $24.11 billion ($3.23 per share), exceeding analysts' forecasts.
* Revenue Growth: Overall revenue grew 12% year-over-year to $69.63 billion.
* Azure Update: Total Azure revenue reached $41 billion for the quarter.
* AI Revenue Surge: Microsoft's AI revenue run rate increased to $13 billion.
* Market Reaction: Microsoft shares declined less than 2% in extended trading.
* Industry Competition: Concerns raised about competitiveness of US tech firms amid DeepSeek's AI advancements.
* OpenAI Initiatives: Microsoft continues to invest in AI through OpenAI and the Stargate joint venture.