Stocks
Microsoft Surges on Cloud, AI Strength
Microsoft's latest earnings report revealed a 17% increase in overall revenue to $81.3 billion for its second quarter of 2026.
The growth was largely driven by Microsoft's cloud services and artificial intelligence (AI) products, with search and news advertising revenue slowing down at 10%, excluding traffic acquisition costs.
LinkedIn made significant gains, particularly in video ads, with a 30% year-over-year increase. This is attributed to the platform's adoption of short-form video content, popularized by YouTube and TikTok.
Microsoft Chairman and CEO Satya Nadella stated that the company has built an AI business larger than some of its biggest franchises, with 'AI diffusion' only just beginning.