Microsoft Stock Explodes 15% Following Historic FY26 Q4 Earnings Report

Microsoft (NASDAQ:MSFT) just reminded Wall Street why it’s leading the AI race. A blockbuster earnings report sent the company’s stock soaring, with investors rewarding strong cloud growth and easing concerns over massive AI spending.

Cloud revenue stole the spotlight again, Microsoft stock jumps

Microsoft stock jumped more than 15% during Thursday’s trading session, reaching around $449.66 after the company reported stronger-than-expected fourth-quarter results. The rally added hundreds of billions of dollars to Microsoft’s market value in just a few hours.

The biggest highlight came from Azure, which generated more than $100 billion in annual revenue for the first time. Microsoft also reported $39.3 billion in Intelligent Cloud revenue, comfortably beating analysts’ expectations of roughly $38.1 billion.

That said, Azure wasn’t the only reason investors were happy. Microsoft reported $41 billion in capital expenditures during the quarter, slightly below Wall Street’s expectation of about $42 billion. The lower figure eased concerns that AI infrastructure spending was spiraling out of control.

Investors liked what Microsoft didn’t change

One detail stood out during the earnings call. Microsoft didn’t raise its capital spending outlook despite continuing to invest aggressively in AI infrastructure. Microsoft also highlighted growing demand for Copilot across both consumer and enterprise products. CEO Satya Nadella said conversations per user nearly doubled year over year, while weekly Copilot engagement is now comparable to Outlook and Teams.