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Microsoft shares jump after Azure growth beats expectations
Azure revenue rose 43% year over year in the fiscal fourth quarter, while Microsoft closed Thursday up 15.5% despite being down 4% for the year.
Microsoft shares surged after the company reported results investors focused on for its fiscal fourth quarter, with the stock closing Thursday up 15.51%. Even with the rally, Microsoft remains down about 4% year to date, underscoring how much the quarter’s Azure and AI momentum mattered to the market.
According to Yahoo Finance, Azure, Microsoft’s cloud computing segment, delivered 43% year over year revenue growth and topped expectations. The outlet also reported that Microsoft’s total cloud revenue reached more than $214 billion for fiscal 2026, up 27% year over year, while Azure’s yearly revenue surpassed $100 billion after expanding 41% over the fiscal year.
The company said demand for its AI and cloud infrastructure is outpacing available capacity, with customers still requesting more AI computing power than Microsoft can currently provide. Yahoo Finance added that Microsoft expanded its AI infrastructure by adding 31 new data centers across five continents, bringing an additional gigawatt of capacity online, and said any new capacity was rapidly monetized.
Microsoft also provided forward-looking guidance tied to Azure momentum, with management expecting Azure revenue to grow 45% year over year in the first quarter of fiscal 2027. Yahoo Finance noted Microsoft spent $41 billion on capital expenditures in the quarter and expects capital spending to rise further in fiscal 2027 as demand remains elevated.