Microsoft Surged 8% to Prove Its $116 Billion AI Bet Isn't a Gamble Anymore
Memeburn, Friday, July 31st, 2026
Microsoft's Q4 FY2026 revenue hit $90 billion and Azure crossed $100 billion annually, lifting shares 8%.
Microsoft's fiscal Q4 2026 report delivered $90 billion in revenue, up 18% year over year and roughly $2.4 billion above analyst estimates, sending shares up 8% after hours.
Azure crossed $100 billion in annual revenue for the first time, growing 43% in Q4 alone and outpacing the 39-40% analysts expected.
The contracted revenue backlog reached $678 billion, more than double full-year revenue, while full-year capital expenditures hit $116 billion, up about 80% from fiscal 2025, with $175 billion guided for fiscal 2027.
A $3.2 billion gain from Microsoft's Anthropic investment boosted earnings, and Copilot surpassed 30 million paid seats, up from 20 million three months earlier.