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In Q2 2026, Microsoft reported total revenue of $81.3 billion, a 17% increase, driven by significant growth in its cloud services, which surpassed $50 billion for the first time. The company experienced a 21% rise in operating income and a 24% increase in EPS, despite slight declines in gross margin due to ongoing investments in AI infrastructure. Management cautioned about potential margin compression in the near term due to increased operating expenses and challenges in the gaming sector.

Author

Man Wai HE

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EN