Why did Microsoft's More Personal Computing revenue decline in Q2 2025?

The decline in Microsoft's More Personal Computing revenue in Q2 2025 can be attributed to a combination of factors: 1. **Slowing Cloud Growth**: The company experienced a slowdown in cloud growth, which is a critical component of its More Personal Computing segment. This slowdown led to a missed estimate in cloud revenue, which contributed to the overall revenue decline. 2. **Disappointing Azure Growth and Revenue Forecast**: Microsoft's Azure cloud services, which are a significant part of the More Personal Computing segment, grew by only 19% during the quarter. This is a decrease from the 33% growth seen in the previous quarter. Additionally, the company's revenue forecast for the next quarter was disappointing, further indicating challenges in this segment. 3. **Investor Skepticism**: Investors showed skepticism about Microsoft's long-term growth prospects, particularly regarding the profitability of its AI investments. This skepticism could have led to a decline in demand for Microsoft's stock, including the More Personal Computing segment. In summary, the decline in Microsoft's More Personal Computing revenue in Q2 2025 is likely a result of a combination of factors including slowing cloud growth, disappointing Azure growth and revenue forecast, and investor skepticism.