A leading technology company announced its second‑quarter results after the bell, surpassing Wall Street’s estimates on both earnings and revenue. The firm reported earnings per share of $5.16 against an expectation of $3.92, and total revenue of $81.27 billion versus a forecast of $80.3 billion.
Cloud revenue topped the $50 billion mark for the first time, coming in at $51.5 billion against a projected $51.2 billion. That figure is more than double the $40.9 billion generated in the same period a year earlier. Productivity and business processes sales hit $34.1 billion, slightly above the anticipated $33.6 billion, while the intelligent cloud segment, which includes the firm’s major cloud platform, earned $32.9 billion versus an estimate of $32.2 billion.
Despite the solid numbers, the stock fell over 11% on Thursday, reflecting investor unease about the potential slowdown in cloud growth and the company’s escalating investment in artificial intelligence. The CEO noted that the AI business already rivals some of the firm’s biggest traditional franchises.
AI spending has surged, with the company’s capital expenditures reaching $37.5 billion in the quarter—more than double the $22.6 billion spent in the same period a year earlier. The firm is also grappling with capacity constraints that limit its ability to meet growing AI demand, placing an artificial cap on revenue expansion.
The total value of remaining performance obligations, a key metric for gauging AI demand, rose to $625 billion, with roughly 45% stemming from contracts with a prominent AI partner. Meanwhile, sales of personal computing products—including hardware and software—amounted to $14.3 billion, in line with expectations.
Over the past year, the company’s share price has slipped, lagging behind a major cloud competitor. In contrast, another tech giant has seen its stock soar—up 69%—in part due to the launch of a new AI model that has positioned it as a leader in the field.
