Microsoft Q2 Revenue Rises but Azure Growth Slows

Microsoft reported a 12% year-over-year increase in revenue for the second quarter of fiscal year 2025, reaching $69.6 billion, with a net income rise of 10% to $24.1 billion. The company's earnings per share were $3.23, surpassing the expected $3.11. Despite these positive financial results, Microsoft's shares fell over 3% in after-hours trading due to slower-than-expected growth in its Azure cloud business, which saw a 31% increase, missing the 31.8% estimate. The company's Intelligent Cloud revenue was $25.54 billion, slightly below forecasts, while AI-driven innovations contributed significantly to Microsoft's revenue growth, with its AI business reaching an annual revenue run rate of $13 billion. Microsoft continues to expand its AI and cloud services, participating in major projects like OpenAI's Stargate, which highlights its strategic emphasis on AI technology.