MSFT: Microsoft Stock Rallies Over 8%, Set to Cross $4 Trillion on Strong Earnings Update

Azure, the company’s flagship cloud platform, makes $75 billion a year. Revenue for the quarter? That’s up 18% from the year-ago quarter.

☁️ Azure Powering the Beat

• Microsoft MSFT shares rallied more than 8% in after-hours trading, as the software and cloud giant delivered better-than-expected fiscal fourth-quarter results and a bullish outlook. The implied jump at the opening is set to propel the company’s market cap above $4 trillion.
• Revenue of Azure, the tech titan’s flagship cloud platform, jumped 39% year over year, accelerating from 33% growth in the previous quarter and beating analyst estimates of 35%.
• For the full year, Azure generated over $75 billion in revenue, up 34% from last year, solidifying its role as the towering growth engine in Microsoft’s portfolio. Total cloud revenue surged 27% to $46.7 billion.

💰 Spending on Overdrive

• Microsoft posted adjusted earnings of $3.65 per share on $76.4 billion in revenue, up 18% from the year-ago quarter. Analysts expected $3.37 EPS on $73.9 billion revenue — a decisive beat.
• Last year, Microsoft reported $2.95 EPS on $64.7 billion revenue, showing the 18% top-line jump is part of a sustained growth trend.
• Capital expenditures soared to $24 billion, well above the expected $21.4 billion, as Microsoft continues to pour money into AI infrastructure and data centers.

📈 Stock Momentum

• Microsoft stock is up 22% year-to-date, and Wednesday’s post-earnings surge positions the company to rub shoulders with Nvidia MSFT — the first company to breathe the rarefied air above $4 trillion.
• Microsoft’s AI-driven services like Copilot and Azure OpenAI integrations are key catalysts, keeping demand for cloud capacity red-hot.
• With cloud and AI growth reaccelerating, investors are betting Microsoft can keep its multi-quarter streak of double-digit revenue gains alive.