Microsoft Stock Plunges 7% as Azure Sales Slow, Margin Guidance Disappoints

• Microsoft's stock dropped 7% in extended trading due to slower Azure cloud sales growth and subdued margin guidance for Q3.
• Azure's cloud computing unit saw 38% sales growth, a slight decrease from 39% last year, despite a 66% increase in capital expenditure to $37.5 billion.
• Q2 revenue of $81.27 billion and EPS of $4.14 marginally surpassed expectations, but cloud performance disappointed investors.
• Microsoft projects Q3 operating margins at 45.1%, below the 45.5% consensus, adding pressure on the stock.
• Investments in OpenAI boosted EPS by $1.02, and the company's order backlog, including a $250 billion deal with OpenAI, reached $625 billion.

Why It Matters: Slower Azure growth and cautious margin outlook led to a significant 7% drop in Microsoft's stock.