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Microsoft shares surged 9% pre‑market to $426.61 as Q4 revenue hit $90 bn (+18% YoY) and Azure grew 43%, fueling AI optimism.
Microsoft shares rose 9.24% to $426.61 in pre‑market trading following a fourth‑quarter earnings beat that saw revenue climb 18% YoY to $90.01 bn and adjusted earnings hit $4.74 per share, well above analysts’ forecasts of $87.62 bn and $4.24 respectively [1]. The surge underscores investor confidence that Microsoft’s heavy AI and cloud spending is already translating into higher growth.
| At a glance | |
|---|---|
| Stock price | $426.61 (up 9.24% pre‑market) |
| Q4 revenue | $90.01 bn (+18% YoY) |
| Azure growth | 43% YoY (fastest in four years) |
| Microsoft 365 Copilot seats | 30 million (up from >20 million in three months) |
Azure’s 43% year‑over‑year revenue increase was the fastest expansion since 2022 and outpaced Wall Street’s roughly 40% expectation, reinforcing the view that enterprise AI demand is robust [3]. Intelligent Cloud revenue rose 32% to $39.3 bn, while total cloud revenue grew 27% to $59.3 bn, highlighting the breadth of Microsoft’s cloud momentum [1]. The strong cloud results helped offset concerns about the company’s $41 bn capital spend in the quarter—a 70% rise from a year earlier—by showing that the new AI‑focused data centers are being utilized almost immediately [3].
Microsoft’s earnings beat contrasted sharply with peers; Google’s parent Alphabet posted record cloud growth (82% for Google Cloud) yet saw its shares fall after raising capital‑spending forecasts, reflecting lingering investor worries about AI cost pressures [3]. By contrast, Microsoft’s ability to deliver both revenue and earnings beats while expanding AI‑related infrastructure has reignited interest in software stocks, as noted by analysts who point to the company’s diversified revenue base and strong free‑cash‑flow generation [1]. The stock’s pre‑market rise also lifted the Nasdaq Composite 2.78% and the S&P 500 1.67%, indicating broader market impact [2].
The rally shows that investors are rewarding Microsoft for turning massive AI infrastructure bets into tangible revenue growth, but the sustainability of this momentum will hinge on continued cloud expansion and efficient capital deployment.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 4 outlets · Aug 1, 2026 · How we report
Researchers showed that malicious instructions can be hidden in a Word document, which Copilot may execute when generating or editing a new document, allowing the instructions to propagate to subsequent files.
Microsoft has implemented several focused mitigations, recommends installing the latest updates, employing multiple security layers, and reviewing AI‑generated content before use.
Microsoft intends to launch a unified Copilot "super app" that combines chat, coding, coworking, and autonomous Autopilot features for both consumer and business markets later in the year.
Microsoft reports approximately 30 million paid Copilot users among its 450 million business seats.
Experts argue that distinguishing instructions from data at the model or platform level is necessary to prevent similar injection attacks, but it requires industry‑wide architectural changes that are not yet in place.