Generated

Microsoft shares surged 15% following a better-than-expected earnings report and a conservative AI spending plan.

Microsoft shares experienced the largest single-day market-value increase in history after the company reported $90 billion in revenue and a 31% profit surge. While competitors like Google and Amazon increased their capital spending, Microsoft kept its 2026 spending plan steady, a move that investors praised for its focus on returns. CEO Satya Nadella noted that the growth in AI products, such as the 30 million paid seats for Microsoft 365 Copilot, reflects customer confidence in the company's AI transformation. The company also reported that Azure revenue passed the $100 billion mark for the first time. Despite these gains, the company recently announced layoffs for 4,800 employees, which executive vice president Amy Coleman attributed to the shifting tech landscape caused by artificial intelligence. The stock reached a market capitalization of $3.4 trillion, ranking it as the fourth-largest company worldwide.

Sources