India, Jan. 30 -- Microsoft shares fell as much as 12.18% on Thursday, January 29, 2026, marking the company's worst single-day performance since the beginning of the pandemic in March 2020. This sharp decline erased approximately USD 357 billion in market capitalization. The sell-off followed the release of fiscal second-quarter results on Wednesday evening, where strong headline numbers failed to satisfy investor concerns regarding the high costs of artificial intelligence.

On paper, Microsoft's second quarter of fiscal year 2026 surpassed market expectations. The company reported:

Revenue: USD 81.3 billion, a 17% increase year-over-year.

Adjusted EPS (Non-GAAP): USD 4.14, beating the consensus estimate of USD 3.92.

Net Income (GAAP...