Microsoft’s $90 billion Q4 revenue and 43% Azure growth beat estimates, easing AI spending concerns and lifting shares.
Microsoft reported fiscal fourth-quarter revenue of $90 billion, up 18% year-over-year and above the $87.6 billion consensus estimate. Adjusted earnings per share reached $4.74, a 30% increase, while Azure cloud revenue grew 43% on a constant-currency basis, surpassing expectations.
The company maintained its capital expenditures outlook, allaying investor fears about overspending on AI infrastructure. Azure’s growth accelerated, contrasting with recent concerns over Microsoft’s position in the AI race. Shares rose 9% in after-hours trading, reversing a 24% decline over the past year.
Investors had grown skeptical of Microsoft’s AI strategy, citing reliance on OpenAI and vulnerability in subscription software. The earnings beat and steady guidance suggest a potential turnaround in sentiment, though analysts caution against overreacting to a single report.