Microsoft Azure Fuels Q4 Revenue Growth, Stock Soars Past $4 Trillion Market Cap

Microsoft's stock surged after the company reported better-than-expected financial results for its latest quarter, driven by double-digit revenue growth in its Azure cloud business. The tech firm posted adjusted earnings of $3.65 a share on revenue of $76.4 billion for the fiscal fourth quarter. Despite missing its $4 trillion market cap goal, the stock is on fire.

Microsoft's stock surged on July 2, 2025, following the company's latest quarterly financial report. The tech giant reported better-than-expected results, with adjusted earnings of $3.65 per share on revenue of $76.4 billion for the fiscal fourth quarter. The key driver behind this performance was double-digit revenue growth in its Azure cloud business [1].

Despite the company missing its $4 trillion market cap goal, the stock has been on fire. Microsoft's Azure revenue surpassed $75 billion in the latest quarter, representing a 34% increase from the previous year. This growth was primarily driven by investments in artificial intelligence (AI) and cloud technology [1].

However, the human cost behind Microsoft's financial success has not gone unnoticed. Just weeks before the earnings report, Microsoft laid off around 9,000 employees across multiple divisions. The decision to cut jobs was made to prioritize investments in AI and cloud computing, which are driving the company's future growth [1].

CEO Satya Nadella emphasized an AI-first strategy in a statement accompanying the earnings report. He highlighted that "cloud and AI is the driving force of business transformation across every industry and sector," and noted that Azure's revenue growth was driven by growth across all workloads [1].

Microsoft's layoffs have sparked widespread frustration among workers, but the company's aggressive spending on AI and cloud computing appears to be paying off. The company's gaming revenue also saw a 10% boost in the latest quarter, along with content and services revenue up 13%, driven by growth in first-party content and Xbox Game Pass [1].

Meanwhile, Exponent, a consulting firm specializing in engineering and scientific problem-solving, also reported its second-quarter fiscal 2025 results on July 31, 2025. The company reported $142.0 million in total revenue (GAAP) for Q2 FY2025, a 1% increase from Q2 FY2024, narrowly exceeding its own expectations for flat to slightly lower growth [2].

References:
[1] https://m.economictimes.com/news/international/us/microsoft-layoffs-in-2025-and-satya-nadellas-ai-strategy-microsoft-lays-off-thousands-makes-27-billion-profit-in-q2-ceo-satya-nadella-doubles-down-on-ai-mania/articleshow/123045962.cms
[2] https://www.nasdaq.com/articles/exponent-expo-q2-revenue-rises-1