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Microsoft shares surge as Azure cloud revenue exceeds $100 billion for the first time

Microsoft shares rose more than 15% in early trading after the company reported fourth-quarter earnings that beat Wall Street estimates on both the top and bottom lines. The software and cloud giant reported overall revenue of $90 billion, an 18% increase from the previous year, while adjusted earnings reached $4.74 per share. A key highlight of the report was the Azure cloud-computing business, which saw revenue jump 43% and surpass the $100 billion mark for the first time. Investors reacted positively to the news because Microsoft managed to achieve these results while keeping capital expenditures at $41 billion, which was slightly below the anticipated $42 billion. This disciplined spending approach contrasted with competitors like Alphabet, which saw its stock fall after raising spending projections, and Meta, which also raised its capital expenditure forecasts. Microsoft expects Azure growth to accelerate further next quarter, projecting a45% growth rate as demand for AI infrastructure continues to outpace supply.

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