Microsoft’s shares surged after reporting a 18% revenue increase to $76.4 billion and 24% earnings per share growth to $3.65 in Q4 of fiscal 2025. Azure’s revenue grew 39% year-over-year, surpassing estimates and emphasizing Microsoft’s AI leadership. Q1 2026 revenue outlook beats expectations with Azure revenue growth projected at 37%. Microsoft also plans to invest over $30 billion in capex in Q1.

Microsoft’s cloud computing unit, Azure, exceeded Wall Street’s forecast with over $75 billion in revenue, marking a 34% year-over-year increase. Azure’s cloud demand outpaces supply, supporting future growth. Microsoft’s stock rose over 8% in extended trading, nearing a $4 trillion market cap. Revenue guidance for Q1 2026 was better than expected, showcasing continued strong AI investment.

Microsoft’s Q4 of fiscal 2025 saw a 9% increase in revenue from the more personal computing segment, with all main businesses reporting sales growth. Bing search business’s higher margins boosted overall segment operating margins. Q1 2026 revenue outlook exceeds consensus forecast, with Azure revenue growth projected at 37%. Microsoft plans to invest over $30 billion in capex in Q1.

Read more at CNBC: Microsoft’s monster quarter and strong outlook cements its status as an AI leader