Microsoft Corporation (MSFT)’s Capital Expenditures Soar, Cloud Revenue Falls Short of Expectations, and Shares Plummet After Hours

As reported by Reuters, the marketplace reacted powerfully connected January 29, 2026, erstwhile Microsoft Corporation (NASDAQ:MSFT) announced unprecedented spending connected artificial quality on with slower unreality growth. After-hours trading saw a 6.5% diminution successful shares arsenic information revealed Azure income surged by 39% successful the fiscal 2nd quarter, conscionable marginally supra forecasts. The full gross climbed by 17% to $81.3 billion, but the outgo summation was faster astatine 19%. Capital spending totaled $37.5 billion, up astir 66% twelvemonth connected year, with astir two-thirds going toward computing chips, exceeding expectations.

For the 3rd 4th of the fiscal year, Microsoft Corporation (NASDAQ:MSFT) projects Azure maturation of 37% to 38% and full gross adjacent to $81.2 billion. It revealed for the archetypal clip that M365 Copilot has 15 cardinal yearly users. The unreality backlog has doubled to $625 billion, with OpenAI accounting for astir 45% of the total. Investor fears were heightened by contention from Google’s Gemini and different AI rivals, portion executives cautioned that increasing representation spot costs could enactment unit connected profitability.

The banal is down by 8.34% YTD arsenic of January 29, 2026.

Microsoft Corporation (NASDAQ:MSFT) creates and licenses user and endeavor software.

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