Microsoft shares fell sharply after hours following its latest earnings, as investors focused on slowing Azure growth, rising infrastructure costs, and the company’s deepening reliance on OpenAI. The sell-off came despite Microsoft beating Wall Street expectations and reporting strong headline financials.

Microsoft shares slid more than 6% after hours despite a strong earnings beat as investors questioned the near-term return on the company's surging AI-driven capital spending.

Microsoft on Wednesday reported a 60 percent jump in net income for the last quarter of 2025, but spending on artificial intelligence surged, rattling investors.

The drop in Frankfurt trading was broadly in line with Microsoft’s decline in U.S. after-hours trading following the release of