Microsoft stock hit an all-time high today, topping $4 trillion for the first time, after delivering strong Q4 earnings results driven by growth in all three core business segments, particularly in Azure cloud infrastructure, a sign of its AI strategy paying off. Revenue was up 18% to $76.4 billion, exceeding expectations, and margins scaled up with operating income growing 23% and earnings per share up 24%. The company expects double-digit revenue growth in fiscal 2026 and strong growth in its cloud business.
Microsoft Corp. (MSFT) stock hit an all-time high today, topping $4 trillion for the first time, following the release of its strong fiscal fourth-quarter earnings report. The company's stock surged over 5% after delivering impressive results, driven by robust growth in all three core business segments, particularly in Azure cloud infrastructure, a testament to its AI strategy paying off.
Microsoft reported earnings per share of $3.65, exceeding Wall Street estimates of $3.37. Revenue climbed to $76.4 billion, marking an 18% increase from the prior year, and operating income grew by 23%. Earnings per share were up 24%, highlighting the company's financial health. The Azure cloud business generated over $75 billion in revenue over the past year, rising 34% from the year before.
Microsoft's growth is attributed to significant investments in artificial intelligence and cloud services. The company's Intelligent Cloud segment, which includes Azure, reported $29.8 billion in revenue during the quarter. The company's integration of AI into its products, notably through its early investments in OpenAI, has also contributed to its growth.
The company expects double-digit revenue growth in fiscal 2026 and strong growth in its cloud business. Despite recent challenges in its relationship with OpenAI, Microsoft remains optimistic about its future prospects.
References:
[1] https://finance.yahoo.com/news/veteran-trader-takes-hard-look-204707559.html
[2] https://www.ainvest.com/news/microsoft-surpasses-4t-market-cap-joins-nvidia-company-achieve-milestone-2508/
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