Microsoft (MSFT) stock dipped 4% afterhours on Wednesday despite offering a solid beat for the fiscal second quarter of 2026. For the quarter ending in December, Microsoft earned $4.14 in adjusted earnings per share (EPS) on revenue of $81.3 billion. The EPS figure beat by $0.22, while the revenue figure rose 17% YoY and topped consensus by $1 billion.
Microsoft Cloud revenue came in at $51.5 billion, up 26% YoY.
Sales in Productivity & Business Processes was $34.1 billion, up 16% YoY.
Revenue in Intelligent Cloud was $32.9 billion, up 29% YoY, which includes the “Azure and other cloud services” segment that saw sales increase 39% in that time frame.
Revenue in More Personal Computing arrived at $14.3 billion, down 3% YoY, owing especially to a decline in Xbox revenue.
Microsoft increased its dividends and share repurchases by 32% YoY to $12.7 billion.
