New York, Jan 23, 2026, 09:33 EST — Regular session
- Microsoft shares jumped roughly 1.6% in early trading, beating the wider tech sector.
- The company confirmed that access to Microsoft 365 was restored following an outage that disrupted several services.
- Investors are eyeing Microsoft’s Jan. 28 earnings for signals on cloud expansion and AI investment.
Microsoft shares rose 1.6% to $451.14 in early Friday trading, rebounding after a disruption that took parts of its Microsoft 365 productivity suite offline for thousands of users just the day before.
Timing is key. Microsoft enters a packed week for megacap tech earnings, and traders are on edge over any signs of weakening demand or rising costs, particularly in AI infrastructure.
“Guidance now is more critical than ever,” said Peter Cardillo, chief market economist at Spartan Capital Securities, highlighting how swiftly stocks have been hit when outlooks fall short. 1
Microsoft announced Friday that Microsoft 365 access had been restored. According to outage-tracker Downdetector, reported incidents fell sharply to around 113 by 1:05 a.m. ET, down from a peak of more than 15,890 the previous day. The disruption hit services like Outlook, Microsoft Defender, and Microsoft Purview, Reuters reported. 2
Downdetector relies on user-submitted reports, meaning its numbers aren’t a precise headcount. But for firms using Microsoft 365 for email, document sharing, and security, brief outages can quickly escalate into halted workflows and a spike in support requests.
Microsoft is set to report its fiscal 2026 second-quarter earnings after the market closes on Wednesday. The company plans to host an earnings webcast at 2:30 p.m. Pacific time. 3
The upcoming report is set to highlight Azure cloud growth once again, alongside capital expenditures — the funds Microsoft is investing in long-term assets like data centers — as it expands capacity for AI services and related enterprise software.
Early Friday, the broader market showed some strength. The Nasdaq-centric Invesco QQQ climbed around 0.7%, and the Technology Select Sector SPDR Fund rose close to 0.8%. Nvidia and Apple advanced in the opening session as well.
Off the screen, Microsoft made a move in sports. On Thursday, Mercedes announced a new sponsorship deal with Microsoft while revealing images of its 2026 Formula One car, which features Microsoft branding. 4
The immediate risk boils down to reliability and the outlook. Another hiccup in service or a cautious take on cloud demand and spending might quickly dampen sentiment, especially with the stock hovering near record highs and investors keeping a tight grip on costs.
Microsoft reports earnings Jan. 28 after markets close. Investors are eyeing updates on cloud expansion and how quickly the company plans to ramp up AI spending.
