Microsoft shares surge 24% after strong Q4 earnings and AI demand

Microsoft Corp. stock jumped 24.6% in July while the S&P 500 was flat and the Nasdaq fell 3.2%. The rally followed the company’s fourth‑quarter FY2026 earnings release, which showed revenue of $90.0 billion, up 18% year‑over‑year and beating analysts’ $87.6 billion estimate. Net income rose 22% to $35.3 billion and adjusted earnings per share increased 23% to $4.74, surpassing the $4.24 forecast.

Growth was driven by cloud services: Azure revenue grew 43% and the platform’s annual revenue topped $100 billion for the first time. Microsoft 365 Copilot reached more than 30 million paid seats, highlighting strong demand for the company’s AI offerings. The firm added 31 new data centers across five continents, bringing its total to 88 new centers this year.

The earnings beat sparked a 15.5% one‑day jump, the best daily gain since 2008. Investors who bought the dip in April at around $370 per share have seen roughly a 30% rise, turning a $7,000 investment into about $9,200. The results underscore Microsoft’s continued relevance in the AI era and have boosted confidence among both U.S. and U.K. investors.