The Brief Microsoft reported strong quarterly earnings, with revenue up 17% and profits beating Wall Street expectations as AI adoption grows. Despite the earnings beat, Microsoft shares fell nearly 5% after hours, and it’s unclear how markets will react long term to AI costs. The company reported net profit for the quarter of $30.9 billion, or $4.14 per share, beating Wall Street expectations. Microsoft was expected to earn $3.91 per share on revenue of $80.31 billion for the October-December quarter, according to analysts surveyed by FactSet Research. Despite beating expectations, Microsoft stock dropped nearly 5% in after-hours trading after it released its earnings report.