Microsoft Soars 8.48% on AI, Cloud Revenue Surge

Microsoft's stock surged 8.48% in pre-market trading on July 31, 2025, driven by strong earnings and robust growth in its AI and cloud businesses. The company reported a 17% year-over-year increase in revenue, reaching $764 billion, with Azure cloud services revenue growing by 39%.

Microsoft's AI infrastructure expansion has been significant, with over 2,000 megawatts of new data center capacity added in the past 12 months. The company now operates over 400 data centers across 70 regions globally, leading the industry in scale and capacity. The AI capabilities of Microsoft's products have seen a surge in user adoption, with over 8 billion monthly active users across all AI features and over 100 million users for the Copilot product line.

Microsoft's CEO, Satya Nadella, highlighted the company's strong performance, attributing it to the rapid innovation and broad adoption of AI technologies. The company's cloud and AI services have become the driving force behind its growth, with Azure's revenue exceeding $750 billion for the year, a 34% increase from the previous year. The company's focus on AI and cloud services has positioned it as a leader in the tech industry, with a strong pipeline of contracts and a robust financial performance.

Microsoft's CFO, Amy Hood, emphasized the company's strong financial position, with a commercial backlog of $3680 billion and a commitment to double-digit revenue and operating income growth for the 2026 fiscal year. The company's capital expenditures, which reached $242 billion in the fourth quarter, reflect its investment in future growth and infrastructure expansion. Despite concerns about rising capital expenditures, Microsoft remains focused on capturing market share and delivering strong financial results.