Microsoft stock rose about 25% after better-than-expected Q4 earnings, as AI investments began to show returns, with Azure revenue growing 43%.
Microsoft announced better-than-expected fourth-quarter earnings, winning back investors who had previously been skeptical of the returns on its AI investments. The company stated that it now has over 30 million paid Microsoft Copilot 365 users, and Azure cloud service revenue grew by 43% last quarter, with an expectation of continued accelerated growth in the first half of fiscal year 2027. Despite reports suggesting its AI growth primarily stems from OpenAI, these results boosted Wall Street's confidence in Microsoft's AI strategy. Since the earnings release, Microsoft's stock price has risen by approximately 25%, outperforming peers such as Amazon, Google, Meta, and Oracle.
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