Microsoft (NASDAQ:MSFT) demonstrated the ability to monetize artificial intelligence outside of infrastructure in its second quarter fiscal 2025 earnings results. Still, shares were down 5% during early market action on Thursday.

Microsoft’s vast cloud division posted slower growth than Wall Street forecast as the tech group struggled to keep pace with customer demand for artificial intelligence-related services. The Seattle-based software group beat analysts’ expectations for revenue and net income in the quarter ending in December,

Microsoft announced slow business growth in its cloud business in Q1 2025 as it struggles to create data centers that can handle the demand for its AI.

(MSFT) on Wednesday reported fiscal second-quarter earnings of $24.11 billion. The Redmond, Washington-based company said it had net income of $3.23 per share. The results surpassed Wall Street expectations.

Shares in Microsoft fell 2.8% in afterhours trading as the tech giant released fourth-quarter earnings. The company reported earnings per share of $3.23 and revenue of $69.6 billion. Microsoft was expected to report earnings per share of $3.