Microsoft’s cloud unit surpasses $100 billion in revenue for the first time, beating earnings estimates and easing capex concerns.
Microsoft shares surged over 9% in premarket trading after reporting fourth-quarter earnings that exceeded Wall Street expectations. The company’s Azure cloud service crossed $100 billion in revenue for the first time, driving Intelligent Cloud segment revenue to $39.3 billion, above the $38.1 billion forecast.
Capital expenditures reached $41 billion, slightly below the anticipated $42 billion, alleviating investor concerns about overspending. Microsoft’s results contrast with Alphabet’s recent capex increase, which sent its stock down 6% last week. Year-to-date, Microsoft shares are down 19%.
Investors welcomed the earnings beat and stable spending outlook, signaling confidence in the company’s growth trajectory despite broader tech sector volatility.