Microsoft (MSFT) shares moved lower after the close Wednesday as the tech giant reported fiscal second-quarter Intelligent Cloud revenue that missed analysts’ expectations.
The company saw revenue rise 12% year-over-year to $69.63 billion, surpassing the analyst consensus from Visible Alpha. Earnings came in at $24.11 billion, or $3.23 per share, compared to $21.87 billion, or $2.93 per share, a year earlier. That was also above expectations for the quarter ended Dec. 31.
However, revenue from Microsoft’s Intelligent Cloud segment, which includes its Azure cloud computing platform, slightly missing projections, rising 19% to $25.54 billion. Total Azure revenue for the quarter approached $41 billion, the company said.
Shares of Microsoft fell less than 2% in extended trading Wednesday. The stock, which also rose during today’s regular session, had gained about 5% so far in 2025 through Wednesday’s close.
CEO Satya Nadella said in a statement that Microsoft’s AI revenue run rate rose to $13 billion.
The results come with Microsoft-backed OpenAI in focus this week after the surging popularity of an app from Chinese startup DeepSeek, which runs on an AI model it claimed can perform on par with American rivals at a fraction of the cost, raised concerns about the competitiveness of U.S. firms and their spending.
Raymond James and Bank of America analysts said that DeepSeek’s advances could push Microsoft, along with Alphabet’s (GOOGL) Google and Amazon (AMZN), to act with greater urgency.Â
OpenAI is also involved with Stargate, an AI infrastructure-building joint venture with Oracle (ORCL) and SoftBank announced earlier this month. The companies said they would commit $100 billion to start, and as much as $500 billion over the next four years.Â
This article has been updated to add more information about the company’s results and the latest share-price information.