Microsoft (MSFT) Reports Q2 Earnings: What Key Metrics Have to Say

Microsoft (MSFT) reported $81.27 billion in revenue for the quarter ended December 2025, representing a year-over-year increase of 16.7%. EPS of $4.14 for the same period compares to $3.23 a year ago.The reported revenue represents a surprise of +1.3% over the Zacks Consensus Estimate of $80.23 billion. With the consensus EPS estimate being $3.88, the EPS surprise was +6.84%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.Here is how Microsoft performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:Percentage Change Y/Y (GAAP)- More Personal Computing: -3% versus the 10-analyst average estimate of -2.6%.Percentage Change Y/Y (GAAP)- Intelligent Cloud: 29% versus the 10-analyst average estimate of 26.9%.Percentage Change Y/Y (GAAP)- Productivity and Business Processes: 16% versus 13.8% estimated by 10 analysts on average.Percentage Change Y/Y (GAAP)- Revenue: 17% versus the 10-analyst average estimate of 15.1%.Percentage Change Y/Y (GAAP)- Microsoft 365 Commercial cloud: 17% compared to the 15% average estimate based on four analysts.Percentage Change Y/Y (GAAP)- Azure and other cloud services: 39% versus the three-analyst average estimate of 38.4%.Percentage Change Y/Y (GAAP)- Windows OEM and Devices: 1% versus the three-analyst average estimate of -5%.Revenue- Productivity and Business Processes: $34.12 billion compared to the $33.49 billion average estimate based on 10 analysts. The reported number represents a change of +15.9% year over year.Revenue- Intelligent Cloud: $32.91 billion compared to the $32.41 billion average estimate based on 10 analysts. The reported number represents a change of +28.8% year over year.Revenue- More Personal Computing: $14.25 billion compared to the $14.27 billion average estimate based on 10 analysts. The reported number represents a change of -2.7% year over year.Revenue- Service and other: $64.82 billion compared to the $62.24 billion average estimate based on two analysts. The reported number represents a change of +21.4% year over year.Revenue- Product: $16.45 billion versus the two-analyst average estimate of $17.86 billion. The reported number represents a year-over-year change of +1.4%.View all Key Company Metrics for Microsoft here>>>Shares of Microsoft have returned -1.4% over the past month versus the Zacks S&P 500 composite's +0.8% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks