On July 30, Microsoft surged over 14% in regular trading. The rally was driven by the company's Q4 FY2026 earnings report released on July 29, which significantly beat market expectations across all key metrics.
Microsoft reported quarterly revenue of $90 billion, up 18% year-over-year, exceeding the consensus estimate of $87.6 billion. Adjusted EPS came in at $4.74, surpassing expectations by over 10%. The standout was Azure and other cloud services revenue, which grew 43% on a constant-currency basis versus the expected 39.6%, with full-year Azure revenue surpassing $100 billion for the first time. Net income rose 31% to $35.8 billion, including a $3.2 billion gain from the Anthropic investment.
Notably, capital expenditure of $41 billion came in 3.5% below expectations, alleviating investor concerns about unchecked AI spending. The company also signed over $130 billion in new data center leases. Multiple analysts raised price targets post-earnings, including Wells Fargo to $650 and Bernstein to $647.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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