Microsoft Reports Over $81 Billion Revenue in Q2
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 19 2026
0mins
Should l Buy MSFT?
Source: NASDAQ.COM
- Significant Revenue Growth: Microsoft reported total revenue of $81.3 billion for Q2 FY2026, marking a 23% year-over-year increase, indicating strong growth potential in cloud computing and AI, despite a 19% decline in stock price year-to-date.
- Cloud Business Surge: The Microsoft Cloud segment surpassed $50 billion in revenue for the first time, growing 26% year-over-year, reflecting robust market demand for its platform, as emphasized by CEO Satya Nadella, highlighting its strategic importance.
- Cash Flow Pressure: Despite strong operating cash flow, Microsoft's free cash flow fell to $5.9 billion in Q2, a notable sequential decline primarily due to increased capital expenditures, which may impact future profitability.
- Profitability Under Pressure: The company's gross margin percentage was 68%, slightly down year-over-year, primarily driven by ongoing investments in AI infrastructure, underscoring the importance and challenges of cost control while pursuing growth.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 369.370
Low
500.00
Averages
631.36
High
678.00
Current: 369.370
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company. The Company develops and supports software, services, devices, and solutions. The Company’s segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services. This segment primarily comprises: Office Commercial, Office Consumer, LinkedIn, and Dynamics business solutions. The Intelligent Cloud segment consists of server products and cloud services, including Azure and other cloud services, SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses (CALs), and Nuance and GitHub; and Enterprise Services, including enterprise support services, industry solutions and Nuance professional services. The More Personal Computing segment primarily comprises Windows, Devices, Gaming, and search and news advertising.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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