Microsoft Corp.’s shares dropped over 4% in premarket trading after the company reported its Q2 results on Wednesday evening. The decline was sparked by a disappointing quarterly revenue forecast, which saw the stock fall further in after-hours trading.
However, Microsoft’s earnings report still had some positive points. The company beat analyst expectations for quarterly revenue, with $69.6 billion generated in the period. It also reported higher-than-expected GAAP earnings of $3.23 per share and an annual AI revenue run rate of $13 billion alongside a major Azure commitment from OpenAI.
CFO Amy Hood stated that this commitment represents just the “first tranche” of future growth potential, highlighting Microsoft’s growing focus on artificial intelligence and its partnership with OpenAI. CEO Satya Nadella also mentioned DeepSeek, citing its potential for innovation and broad adoption.
Despite these positive points, Microsoft’s stock fell due to concerns over revenue forecast. The company has reported an 8.26% year-over-year growth in shares, according to Benzinga Pro data.
Source: https://www.benzinga.com/news/earnings/25/01/43333060/msft-stock-declines-over-4-in-premarket-after-q2-results-ceo-satya-nadella-says-deepseek-has-some-real-innovations