While the software company gained $450 billion in market value, Meta shares plunged.
Marley Kayden highlights Microsoft's (MSFT) strong jump post-earnings jump, reflecting investor confidence after its latest results. She also discusses Amazon's (AMZN) Zoox receiving federal approval, making a significant step forward for its autonomous vehicle ambitions.
U.S. stocks rallied, with the Nasdaq jumping 2.8%, as Microsoft's robust earnings report restored momentum to the artificial-intelligence boom.
The stock is down 12.5% over the past week and on track to hit 11 days in the red, its longest-ever losing streak.
Microsoft Corporation NASDAQ: MSFT reported its fourth-quarter earnings for its 2026 fiscal year (FY2026). Investors liked what they heard, pushing MSFT up over 16% in midday trading after the report.
Microsoft's shares surge after a fiscal Q4 earnings beat. See why ETFs with significant MSFT exposure may offer diversified access to its AI and cloud growth.
Microsoft is spending heavily on AI but is also taking a “responsible” approach to its financials, an analyst said.
MSFT beats Q4 estimates as cloud and AI demand lift revenues, earnings and Azure growth, while expanding AI infrastructure and raising investment plans.
Microsoft's stock soared 15% after reporting its AI work assistant, Microsoft 365 Copilot, now has more than 30 million paid users, up from 20 million in April. The company reiterated its spending goals for the year and signaled a possible expansion in fiscal 2027.
For the first time in three quarters, the market appears willing to grant that the AI spending is buying something real.
Microsoft Corporation delivered record FY26 results, with 18% YoY revenue growth and robust profitability driven by enterprise cloud and AI demand. MSFT's Intelligent Cloud segment accelerated 32% YoY, with Azure up 43% and commercial RPO backlog soaring 84% to $678 billion. Despite massive AI-driven CapEx, MSFT maintains strong cash flows, returns $43 billion to shareholders, and trades at a 24x PE—26% below its 5-year average.
Microsoft stock is surging after its latest earnings report eased investor fears about its AI spending and revenue growth.