Should Investors Consider Buying Microsoft Following Recent Earnings?

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Microsoft Reports Strong Q4 2026 Earnings

On Wednesday after market close, Microsoft (NASDAQ: MSFT) announced its Q4 2026 earnings for the period ending June 30, reporting a revenue increase of 18% year-over-year (YoY) to $90 billion, surpassing the consensus estimate of $87.6 billion. Operating income also rose by 18% YoY to $40.6 billion. Earnings per share (EPS) hit an adjusted $4.74, exceeding expectations of $4.24 and marking a 31% improvement from the previous year.

Significant growth was noted in Microsoft’s Azure cloud services, which experienced a 43% revenue increase YoY. The overall Intelligent Cloud segment, including Azure, saw revenue climb by 32% to $39.3 billion. Despite an increase in capital expenditures (capex) to $35.8 billion, Microsoft maintained its total capex forecast for 2026 at $175 billion, which positively impacted investor sentiment, resulting in an 8% share price increase during after-hours trading.

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