New York, January 20, 2026, 16:33 (EST) — After-hours trading underway.
- Microsoft shares slipped 1.1% in after-hours trading amid a broad selloff on Wall Street.
- Bristol Myers Squibb announced plans to use Microsoft’s radiology AI tools aimed at earlier detection of lung cancer.
- Investors are eyeing Microsoft’s fiscal Q2 earnings later this month for insights into cloud and AI demand.
Shares of Microsoft Corp dipped 1.1% to $454.52 in after-hours trading Tuesday, moving between $449.06 and $456.76 during the session. The software giant’s market cap stands near $3.85 trillion.
The stock fell amid a tough session for risk assets, as trade news and rate concerns drove investors away from popular growth stocks. Microsoft, often seen as a gauge for enterprise tech spending, typically tracks these shifts closely.
Timing complicates things. As earnings season nears, even routine company updates can spark a sharper market move—or be dismissed altogether—based on what investors expect from the upcoming report.
Bristol Myers Squibb announced Tuesday it has partnered with Microsoft to deploy FDA-cleared radiology AI algorithms via Microsoft’s Precision Imaging Network. The technology analyzes X-ray and CT scans to detect lung disease. Over 80% of U.S. hospitals use the network to share imaging and access AI tools, Bristol Myers said, with a focus on improving early detection in underserved areas. “A unique AI-enabled workflow that helps clinicians quickly and accurately identify patients,” said Bristol Myers executive Dr. Alexandra Goncalves. Microsoft’s Peter Durlach added, “clinicians can more easily identify patients who may be showing early signs of cancer.” 1
The broader market took a hit. The S&P 500 ended down 2.04%, while the Nasdaq fell 2.38%, after President Donald Trump brought back tariff threats linked to Greenland. The move raised concerns about escalating trade tensions. Jamie Cox, managing partner at Harris Financial Group, said he’d be “surprised if there was a 3% to 5% drop this week.” Investors are also bracing for a string of U.S. economic data releases and a busier earnings calendar ahead. 2
Big tech stocks tumbled together, as investors lumped the “Magnificent Seven” into one risk bet amid geopolitical tensions and stretched valuations. 3
That Bristol Myers deal won’t ease the short-term questions about Microsoft’s growth drivers. Tariff-related swings could continue to weigh on high-multiple stocks. The upcoming earnings report, not a single partnership announcement, will have a bigger impact on the outlook.
Microsoft announced it will release its fiscal 2026 second-quarter results after the market closes on Wednesday, Jan. 28. The company will follow up with a webcast of its earnings call at 2:30 p.m. Pacific. This event marks the next key catalyst for MSFT, as investors await details on cloud demand and the pace at which AI products are driving revenue. 4
