Microsoft Q2 FY2026 Earnings: Cloud Surpasses $50B as AI Drives 39% Azure Growth

Summary

Microsoft reported Q2 FY2026 results on January 28, 2026, with revenue of $81.3 billion (up 17% year-over-year) and net income of $38.5 billion (up 60% on a GAAP basis). Microsoft Cloud revenue crossed $50 billion in a single quarter for the first time, with Azure and cloud services revenue growing 39%. The company spent $37.5 billion in capital expenditures during the quarter, two-thirds of which went to "short-lived" assets — primarily GPUs and CPUs for Azure AI workloads. Several AI-specific