Microsoft posts strong Q4 as Azure surges

Microsoft (MSFT) reported fiscal fourth-quarter revenue of $90.01 billion, with adjusted earnings per share of $4.74. The quarter exceeded market expectations and reflected broad strength across the company’s operations. Shares rose sharply in extended trading after the announcement, with reports citing sizeable gains in after-hours activity.

The results marked a strong finish to the fiscal year, underscoring the importance of cloud services and artificial intelligence products in Microsoft’s current business mix. Investor reaction suggested that the figures helped ease concerns about the scale and payoff of the company’s recent investment cycle.

Azure revenue grew 43% year over year in the quarter, representing Microsoft’s fastest cloud growth pace since 2022 in some coverage. For the full fiscal year, Azure revenue topped $100 billion, highlighting the scale of the company’s cloud platform. Management also indicated that demand for cloud capacity continues to run ahead of available supply.

Stronger Azure performance was a central factor behind the earnings beat and the positive market response. The cloud business has become a key driver of Microsoft’s overall growth trajectory, and its acceleration was closely watched by both investors and analysts.

Microsoft said Microsoft 365 Copilot now has over 30 million paid seats, up from more than 20 million in April. This rapid adoption underscores customer interest in generative AI tools embedded within productivity software. The growth in paid seats positions Copilot as a meaningful contributor to usage and monetization within the company’s cloud and productivity franchises.

The combination of Azure infrastructure and Copilot-based services is emerging as an integrated offering for enterprise clients. The reported uptake supports the view that AI features are beginning to scale across Microsoft’s installed base.

The company recorded approximately $41 billion of capital expenditures and finance-leased assets in the quarter when finance leases are included. This spending reflects large outlays on data centers and related infrastructure to support AI and cloud demand. Management characterized the investment approach as disciplined while acknowledging the high level of required capacity build-out.

Reports noted that demand for Microsoft’s cloud and AI services still exceeds available supply, which helps explain the elevated spending. The scale of current capex signals that infrastructure build remains a central strategic priority for the company.

Microsoft’s stock jumped in extended trading following the release of the quarterly results, with reports citing after-hours gains in the high single digits and intraday moves that reached higher levels. The strong price action reflected relief about near-term profitability and optimism about future growth.

Analyst commentary following the report was generally positive, highlighting Azure acceleration, Copilot adoption, and the company’s approach to capital investment. Some notes pointed to the potential for continued upside in upcoming quarters, supported by cloud and AI demand trends and the scale of Microsoft’s infrastructure build.