**Microsoft Reports Strong Earnings, Shares Surge 24.6% in July**
On July 30, Microsoft (NASDAQ: MSFT) announced its fourth-quarter fiscal 2026 results for the period ending June 30, reporting a revenue of $90 billion, an 18% increase year-over-year, and net income of $35.3 billion, up 22%. This far exceeded the Wall Street estimates of $87.6 billion in revenue and $4.24 in adjusted earnings per share (EPS), which rose to $4.74. The strong performance was attributed to Microsoft Cloud, which generated $59.3 billion in revenue, up 27% year-over-year, driven by high demand for AI capabilities.
Following the earnings release, Microsoft’s shares increased by 15.5% in one day and finished July up 24.6%, while the S&P 500 remained nearly flat. During the call, CEO Satya Nadella highlighted that Azure revenue surpassed $100 billion for the first time and that the company is adding data center capacity rapidly, with 31 new centers launched across five continents in the last quarter. Looking ahead, CFO Amy Hood projected Q1 fiscal 2027 revenue between $89.85 billion and $90.95 billion, signaling continued growth despite challenges in the PC market.
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