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Microsoft shares jump after FY2026 earnings highlight Azure growth
Microsoft reported 43% Azure growth, beat estimates near 41%, and guided to 45% Azure growth in Q1 of FY2027.
Microsoft shares rose more than 16% in midday trading after the company reported fourth-quarter earnings for its fiscal 2026 year, with investors focused on strength in Azure growth and capital spending balance, according to MarketBeat Ratings.
The outlet pointed to 43% Azure growth in the quarter, exceeding analyst estimates of about 41%, after Microsoft delivered 40% sequential Azure growth in the prior quarter. Microsoft also guided for 45% Azure growth in Q1 of FY2027.
MarketBeat Ratings also highlighted Microsoft’s guidance and cash generation, noting free cash flow improvement and CapEx plans aligned with demand. The company spent $41 billion on CapEx in the quarter, projecting CapEx of around $175 billion for FY2027 and about $190 billion for calendar year 2026.
Additional operating indicators cited by MarketBeat Ratings included remaining performance obligation at $678 billion, up 84% year over year, and Microsoft 365 Copilot adoption crossing 30 million paid seats. The outlet said the metrics suggest AI monetization is moving from pilots toward recurring revenue for enterprise customers.