Microsoft shows gain on OpenAI investment after restructuring as cloud growth slows

January 28, 2026

TL;DR

Microsoft's shares dropped 4% in extended trading following a report of slowing cloud growth.
The company exceeded earnings per share ($4.14 vs. $3.97 expected) and revenue ($81.27 billion vs. $80.27 billion expected) estimates.
Revenue grew 17% year over year, with net income increasing significantly from the previous year.
Azure and other cloud services saw 39% growth, a slight decrease from 40% in the prior quarter.
Other income surged to $9.97 billion, a notable swing from an expense of $2.29 billion a year prior, linked to OpenAI's restructuring.
Commercial remaining performance obligation reached $625 billion, up 110%, driven by OpenAI's $250 billion cloud commitment.
Commercial bookings growth surged to 230%.
The Intelligent Cloud segment revenue increased by nearly 29%.
Productivity and Business Processing segment revenue rose about 16%.
The More Personal Computing segment revenue decreased by about 3%, falling below consensus.
Capital expenditures and finance leases increased by 66% to $37.5 billion.
Microsoft plans to raise prices for commercial Office productivity software subscriptions.
Anthropic announced plans to purchase $30 billion in cloud services from Microsoft.
Microsoft stock has fallen about 11% in the past three months, underperforming the S&P 500.

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