Microsoft posted strong Q2 2025 earnings, beating expectations with robust cloud and AI growth, though it faces challenges in maintaining its Cloud segment's rate of growth.

Investors grow concerned that AI expenses and a looming price war in cloud services could blow up its profits.

The latest revenue numbers highlight the rapid pace of Microsoft’s ongoing transition ... excluding the expense of data and previous research. That sent shockwaves through the AI industry ...

Microsoft intends to address execution challenges in its key cloud unit, while continuing to endure supply constraints.

Microsoft Cloud revenue increased 21% to $40.9 billion ... notably in the form of increased operating expenses. The costs of scaling AI infrastructure and acquisition integration exerted pressure ...

While the company announced strong quarterly numbers on Wednesday, beating analyst forecasts for both revenue and ... in operating expenses in the cloud segment and Microsoft also continuing ...