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Microsoft’s AI Fueled Cloud Growth Impresses, Market Turns Cautious
Microsoft beat Q2 expectations on revenue and earnings, but shares fell as investors weighed AI driven cloud strength against rising capital spending and margins.
Microsoft reported strong second quarter results, beating expectations on revenue and profit as cloud sales exceeded $50 billion annually. Azure growth accelerated on AI workloads, enterprise demand, and Copilot adoption. However, shares slipped after earnings as investors focused on heavy capital spending, margin pressure, and cautious guidance. Management emphasized long term AI monetization, cloud scale advantages, and disciplined cost controls despite rising infrastructure investments globally.