Microsoft shares fall about 12% after earnings, worst session since March 2020

Microsoft shares fell about 12% at midday on January 29, 2026, the day after fiscal Q2 results beat on revenue and EPS. Benzinga said it was the stock's worst session since March 18, 2020, and that roughly $400 billion of market value was erased. Investors focused on slowing Azure growth, cautious guidance and how long AI spending takes to turn into profit, not on the headline beat.

• Down about 12% at midday; Russell 1000 table showed -11.83%
• Worst session since March 18, 2020 (Benzinga)
• Roughly $400 billion of market capitalization erased (Benzinga, intraday)
• Beat on revenue ($81.3B) and EPS ($4.14), but Azure growth and guidance drew scrutiny