Microsoft CEO Satya Nadella gestures as he speaks during the World Economic Forum meeting in Davos, Switzerland, on Jan. 20, 2026. Microsoft shares slid about 10% on Thursday following an earnings report that disappointed some investors, prompting the stock's sharpest daily decline since March 2020. The move trimmed the technology company's market cap by $357 billion, leaving it at $3.22 trillion by the end of Thursday trading. The iShares Expanded Tech-Software Sector exchange-traded fund tumbled 5% on Thursday, while the technology-heavy Nasdaq Composite index finished the day down 0.7%. The all-important growth statistic for Azure and other cloud services came in at 39%, below StreetAccount's 39.4% consensus.