Microsoft shares climbed in after-hours trading following a fiscal fourth-quarter earnings report that showed revenue growth exceeding 17 percent, according to figures released Wednesday evening and reported by NTB. The technology giant, which operates on an off-calendar fiscal year ending June 30, brought in 90,01 milliarder dollar in revenue, beating analyst estimates compiled by Bloomberg that had predicted 87,7 milliarder dollar.
Microsoft Q4 Revenue Beats Estimates With Strong Azure Growth
According to the financial results, Microsoft’s diluted earnings per share hit 4.74 dollars, topping the 4.25 dollar consensus estimate from Bloomberg. Revenue growth for Azure and other cloud services reached 43 percent, outpacing the 39.6 percent analyst estimates. Microsoft CFO Amy Hood stated in an earnings release that total Microsoft Cloud revenue hit 59,3 milliarder dollar, marking a 27 percent increase compared to the same period a year earlier. The strong performance helped offset a year-to-date stock decline where Microsoft shares had fallen roughly 17 percent, trailing the S&P 500 index’s near seven percent gain, before rising 1.68 percent in after-hours trading.
Anthropic Investment Gain and Expanded AI Development
The better-than-expected bottom line was bolstered by a 3,2 milliarder dollar financial gain tied to Microsoft’s investment in Anthropic, which is currently pursuing a public market listing. CNBC reported that during the quarter, Microsoft also introduced a new, cost-effective artificial intelligence model built for coding, named LinkedIn-sjef Dan Shapero to a leadership role, and reduced subscription pricing for its Xbox Game Pass Ultimate service.
Did you know? Microsoft operates on a fiscal year that concludes on June 30, meaning the reported fourth-quarter results also mark the completion of the company’s full annual financial cycle.
Surging Capital Expenditures for Cloud and AI Infrastructure
Investor focus during the earnings call centered heavily on projected capital expenditure budgets, following Alphabet’s decision last week to raise its capital expenditure projections by 15 milliarder dollar. According to Yahoo Finance data, Microsoft now anticipates capital expenditures to reach 190 milliarder across calendar year 2026, representing a 61 percent increase compared to spending levels set for 2025.
Frequently Asked Questions
What was Microsoft’s revenue for the fourth fiscal quarter?
According to NTB and Bloomberg data, Microsoft reported quarterly revenue of 90,01 milliarder dollar, beating analyst expectations of 87,7 milliarder dollar.
How much did Azure cloud services grow?
Revenue growth for Azure and other cloud services reached 43 percent during the quarter, topping the 39.6 percent consensus estimates.
What drove the higher-than-expected financial results?
Microsoft pointed to robust cloud demand alongside a 3,2 milliarder dollar gain linked to the company’s investment in Anthropic.
What are Microsoft’s projected capital expenditures for 2026?
According to Yahoo Finance, Microsoft expects capital expenditures to hit 190 milliarder in calendar year 2026, up 61 percent from 2025.
Join the Discussion
What are your thoughts on Microsoft’s cloud growth and rising infrastructure spending? Leave a comment below or explore more of our tech coverage.
Related reading