TLDR
- Microsoft stock jumped 4.5% after reporting Q4 2025 earnings that beat analyst expectations with $3.65 per share and $76.44 billion revenue
- Azure cloud platform revenue grew 39% year-over-year, with total cloud revenue reaching $46.7 billion for the quarter
- The company’s market cap briefly crossed $4 trillion, making it the second company ever to reach this milestone after Nvidia
- Microsoft announced plans to invest over $30 billion in capital expenditure next quarter to enhance AI infrastructure
- Stock hit new 52-week highs at $557.60 in after-hours trading, up from regular session close of $513.24
Microsoft shares rocketed higher following the release of fiscal fourth-quarter 2025 results that crushed Wall Street expectations. The tech company reported earnings of $3.65 per share and revenue of $76.44 billion, both topping analyst estimates.
Stock jumped 4.5% during regular trading hours before cooling to close at $536.42. In after-hours trading, shares soared over 8% to about $557.60, smashing the previous record high of $518.29 set on July 25, 2025.
The earnings performance marked a strong finish to Microsoft’s fiscal year. Profits climbed 24% while revenue jumped 18% compared to the same period last year. This growth came despite broader concerns about tech spending in the enterprise market.
Microsoft’s cloud business drove much of the quarter’s success. The Intelligent Cloud segment posted revenue of $29.8 billion, representing a 26% increase from the prior year. Azure, the company’s flagship cloud platform, led this charge with 39% revenue growth.
Total cloud revenue for the quarter reached $46.7 billion. Over the full fiscal year, Azure and associated cloud services brought in more than $75 billion, marking a 34% jump from the previous year. These numbers underscore the strength of Microsoft’s position in the cloud computing market.
The company’s AI investments appear to be paying off handsomely. Management highlighted strong customer adoption of AI-powered services throughout the quarter. Demand for AI workloads and infrastructure helped drive Azure’s impressive performance.
Cloud Momentum Expected to Continue
Looking ahead, Microsoft projects Azure revenue growth of 37% in the next quarter. This forecast suggests the cloud momentum isn’t slowing down anytime soon. Customer adoption of AI services continues to accelerate across the platform.
The Productivity and Business Processes segment also delivered solid results. Revenue in this division grew 10% year-over-year, while the More Personal Computing segment rose 6%. All three business segments showed margin expansion during the quarter.
Operating income climbed 16%, outpacing revenue growth across all segments. This margin strength helped push net income well past analyst estimates. The bottom line performance matched the top line beat in quality.
Microsoft announced plans to invest over $30 billion in capital expenditure during the next quarter alone. This massive spending commitment targets AI infrastructure enhancements. The company is clearly betting big on artificial intelligence’s future.
Market Cap Milestone Reached
The earnings results briefly pushed Microsoft’s market capitalization above $4 trillion. This made the company only the second in history to reach this milestone, following Nvidia’s earlier achievement. The market cap milestone reflects investor confidence in Microsoft’s AI and cloud strategy.
Microsoft has outperformed the S&P 500 significantly this year. The stock is up 28.1% since January 1, well ahead of broader market gains. Investors who bought shares five years ago have seen their investment more than double.
Trading volumes spiked following the earnings announcement. The stock’s 4% daily move represents one of only four occasions this year where shares moved more than 5%. This suggests the market views these results as particularly meaningful.
The stock hasn’t been overly volatile compared to other tech names. Microsoft has experienced relatively stable trading patterns throughout 2025. Today’s move stands out against this backdrop of steady performance.
Analyst sentiment remains broadly positive following the results. The combination of strong cloud growth and AI momentum has reinforced bullish views on the stock. Microsoft continues to expand its leadership position in enterprise cloud solutions.
The company’s AI infrastructure investments total over $30 billion for the upcoming quarter, demonstrating serious commitment to this growth area.
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