{"id":441488,"date":"2026-01-29T19:51:14","date_gmt":"2026-01-29T19:51:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/441488\/"},"modified":"2026-01-29T19:51:14","modified_gmt":"2026-01-29T19:51:14","slug":"microsoft-stock-falls-10-after-earnings-why-strong-cloud-growth-wasnt-enough","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/441488\/","title":{"rendered":"Microsoft Stock Falls 10% After Earnings. Why Strong Cloud Growth Wasn&#8217;t Enough"},"content":{"rendered":"\n<p class=\"yf-vbsvxt\">This article first appeared on <a href=\"https:\/\/www.gurufocus.com\/news\/8563450\/microsoft-stock-falls-10-after-earnings-why-strong-cloud-growth-wasnt-enough?utm_source=yahoo_finance&amp;utm_medium=syndication&amp;utm_campaign=headlines&amp;r=caf6fe0e0db70d936033da5461e60141\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:GuruFocus;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">GuruFocus<\/a>.<\/p>\n<p class=\"yf-vbsvxt\">Microsoft (<a class=\"link \" href=\"https:\/\/finance.yahoo.com\/quote\/MSFT\" data-ylk=\"slk:NASDAQ:MSFT;elm:context_link;itc:0;sec:content-canvas\" rel=\"nofollow noopener\" target=\"_blank\">NASDAQ:MSFT<\/a>) shares slid about 10% on Thursday morning after the software giant posted fiscal second-quarter results that came in above Wall Street expectations.<\/p>\n<p class=\"yf-vbsvxt\">For the <a href=\"https:\/\/m.economictimes.com\/news\/international\/us\/microsoft-shares-fall-whats-driving-negative-investor-sentiment-around-msft-stock\/articleshow\/127778442.cms\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:quarter;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">quarter <\/a>ended Dec. 31, Microsoft reported adjusted earnings of $4.14 a share as revenue rose 17% year over year to $81.27 billion. Analysts had forecast earnings of $3.91 a share on revenue of $80.31 billion.<\/p>\n<p class=\"yf-vbsvxt\">Growth remained centered on cloud demand. Revenue from the Intelligent Cloud segment climbed to $32.91 billion, driven by Azure, which posted revenue growth of 39% year over year, or 38% in constant currency. The company had earlier guided for Azure growth of about 37% in constant currency.<\/p>\n<p class=\"yf-vbsvxt\">Total cloud-related revenue reached $51.5 billion during the quarter.<\/p>\n<p class=\"yf-vbsvxt\">Productivity and Business Processes revenue rose to $34.12 billion, topping expectations. The segment saw steady growth across Microsoft 365 commercial and consumer subscriptions, LinkedIn, and Dynamics 365.<\/p>\n<p class=\"yf-vbsvxt\">Revenue from the More Personal Computing segment, which includes Windows, Xbox, and Surface, edged lower than forecasts at $14.25 billion.<\/p>\n<p class=\"yf-vbsvxt\">Microsoft said demand for artificial intelligence-related services continued to expand, though investors appeared focused on valuation and growth sustainability following the results.<\/p>\n","protected":false},"excerpt":{"rendered":"This article first appeared on GuruFocus. Microsoft (NASDAQ:MSFT) shares slid about 10% on Thursday morning after the software&hellip;\n","protected":false},"author":2,"featured_media":441489,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[45,49,48,13389,63,116293,28471,138359,182766],"class_list":["post-441488","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-ca","tag-canada","tag-gurufocus","tag-microsoft","tag-microsoft-365","tag-revenue-growth","tag-software-giant","tag-wall-street-expectations"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/441488","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=441488"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/441488\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/441489"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=441488"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=441488"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=441488"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}