Microsoft’s Q2 2025 earnings surpassed expectations, with revenue rising 12% to $69.6 billion. Azure and cloud services saw a 21% YoY increase, while AI-driven investments fueled a $13 billion annual revenue run rate. However, high capital expenditures and slower-than-expected Azure growth left investors unimpressed, triggering a 4.5% stock dip. CEO Satya Nadella reaffirmed Microsoft’s commitment to AI and cloud expansion despite market skepticism.