Microsoft Corp. ( MSFT ) shares declined by over 4% in premarket trade on Thursday after the company reported its Q2 results after the closing bell on Wednesday. The company gave a disappointing quarterly revenue forecast, pushing its stock down by over 4% in the after-hours trading.

While the company's quarterly revenue forecast was below expectations, Microsoft ( MSFT ) reported quarterly GAAP earnings of $3.23 per share, above the consensus estimate of $3.11.

It reported quarterly revenue of $69.6 billion, beating the $68.78 billion analyst consensus estimate.

The company announced a $13 billion annual AI revenue run rate alongside a major Azure commitment from OpenAI. CFO Amy Hood during the earnings call said that OpenAI's commitment represents just the "first tranche" of future growth potential.

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Why It Matters: Nadella, during the second-quarter earnings call spoke about DeepSeek, saying it has "some real innovations".

"I think DeepSeek has had some real innovations. And that is some of the things that even OpenAI found in ‘o1," he stated, adding, "All gets commoditized and it's going to get broadly used." Satya Nadella said during the company's second-quarter earnings, responding to analyst Brent Thill.

Price Action: Microsoft ( MSFT ) stock declined more than 4% during pre-market hours, after closing 1.09% down on Wednesday. Microsoft's ( MSFT ) shares have recorded an 8.26% growth over the past year, according to Benzinga Pro data.

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