Key Highlights to Watch in Today’s Microsoft Earnings Report

Bassyonni

Published: January 28, 2026 4:41 PM ET

Microsoft is set to reveal its second-quarter earnings today after market close. A key focus will be on the performance of the Azure AI cloud computing segment, which is experiencing surging demand. Analysts anticipate Azure’s revenue growth will reach approximately 38.4%.

Key Highlights to Watch in Today’s Microsoft Earnings Report

Demand for AI Services

Amid the rapid expansion of data centers, there are growing concerns regarding the sustainability of the AI market. Recently, internal reports suggested that Microsoft has reduced its AI growth targets due to weaker customer demand, a development that could indicate shifting market dynamics. Investors will be keen to hear insights from CEO Satya Nadella on this issue.

Partnership with Anthropic

Microsoft’s relationship with Anthropic has strengthened over the past few months.
The tech giant, which has a $13 billion agreement with OpenAI, is increasingly integrating Anthropic’s AI tools into its offerings.
Reports indicate that Microsoft is projected to spend $500 million annually on Anthropic’s services.
Additionally, Microsoft has invested $5 billion in Anthropic alongside Nvidia.

However, there are concerns regarding the effectiveness of Anthropic’s Claude Cowork tool, which reportedly surpasses Microsoft’s own Copilot 365 in performance.

Investment in Data Centers

Microsoft’s expansion in data centers has reached notable levels, drawing attention from political figures like former President Trump. The company has committed to managing its energy consumption responsibly. However, a recent report highlighted that water usage at its data centers has increased significantly.

Last quarter, Microsoft adjusted its capital expenditure outlook, planning to allocate more funds in fiscal year 2026 to address a substantial backlog of $392 billion in booked computing services.

New AI Infrastructure Investments

Investments in AI infrastructure include $13.7 billion in Canada and $17 billion in India.
Microsoft has also introduced the second-generation Maia 200 AI chip, which reportedly offers 30% higher performance than competing products at similar price points.

Microsoft’s extensive involvement in the tech landscape allows it to gather insights on AI adoption trends across various sectors. The forthcoming earnings release is expected to provide crucial information on the ongoing AI boom.