Microsoft has reported impressive financial results for its second fiscal quarter ending December 31, 2025, showcasing significant growth across various sectors. However, according to the official information, the company's stock experienced a decline in after-hours trading, raising questions about its future performance.
Microsoft Reports Strong Revenue Growth
The tech giant achieved $813 billion in revenue, reflecting a 17% increase compared to the same quarter last year. This figure surpassed revenue estimates by $1 billion, while earnings exceeded expectations by nearly 20 cents per share. Despite these strong results, Microsoft’s stock fell 3% in after-hours trading, primarily due to slower growth in its cloud services segment.
AI Integration and Cloud Revenue Highlights
CEO Satya Nadella highlighted that Microsoft is still in the early stages of AI integration, with the company's AI business now surpassing some of its largest franchises. Cloud revenue reached over $50 billion, marking a 26% year-over-year increase, and the commercial remaining performance obligation soared to $625 billion, more than double the amount from the previous year.
Shareholder Returns and Financial Health
In addition to its revenue growth, Microsoft returned $127 billion to shareholders through dividends and share buybacks, representing a 32% increase from the same quarter last year. This commitment to returning value to shareholders underscores the company's robust financial health even as it navigates challenges in specific sectors.
In a related development, MSCI has reported impressive financial results for the fourth quarter of 2025, showcasing a remarkable growth trajectory. For more details, see the full report here.
