"Revenue was $81.3 billion and increased 17% (up 15% in constant currency) Operating income was $38.3 billion and increased 21% (up 19% in constant currency) Net income on a GAAP basis was $38.5 billion and increased 60%, and on a non-GAAP basis was $30.9 billion and increased 23% (up 21% in constant currency) Diluted earnings per share on a GAAP basis was $5.16 and increased 60%, and on a non-GAAP basis was $4.14 and increased 24% (up 21% in constant currency) Non-GAAP results exclude the impact from investments in OpenAI, explained in the Non-GAAP Definition section below"
"Microsoft reported its second quarter 2026 earnings and it showed that its search and advertising revenue was up for 10% but growth is down over the past two quarters. The previous quarter it was up 16% and the one before that was 21% and this quarter, it is only up 10%. Microsoft wrote, "Search and news advertising revenue excluding traffic acquisition costs increased 10% (up 9% in constant currency).""
""We are only at the beginning phases of AI diffusion and already Microsoft has built an AI business that is larger than some of our biggest franchises," said Satya Nadella, chairman and chief executive officer of Microsoft. "We are pushing the frontier across our entire AI stack to drive new value for our customers and partners.""
Microsoft posted Q2 2026 revenue of $81.3 billion, up 17% year-over-year (15% in constant currency), with operating income of $38.3 billion, up 21% (19% cc). GAAP net income rose 60% to $38.5 billion while non-GAAP net income was $30.9 billion, up 23% (21% cc). GAAP diluted EPS was $5.16 and non-GAAP EPS was $4.14. Microsoft Cloud revenue increased 26% to $51.5 billion. Search and news advertising revenue excluding traffic acquisition costs rose 10% (9% cc), a deceleration from prior quarters (16% then 21%). Non-GAAP results exclude investments in OpenAI. Microsoft positions AI adoption and its AI business as a strategic growth driver.
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