Microsoft Blows Past Q4 Earnings Expectations, Azure Growth Skyrockets

Microsoft Corporation (MSFT) recently reported blowout Q4 FY26 earnings, exceeding expectations and sending its stock price soaring. The tech giant's revenue rose 18% to $90 billion, while Azure growth accelerated to 43%. The company's Azure backlog surged to a whopping $648 billion, with an impressive 84% year-over-year growth.

Microsoft's adoption of Microsoft 365 Copilot is expanding rapidly, further integrating AI into the Office suite and driving productivity gains. Despite a rebound in its price-to-earnings (P/E) ratio to 28x, MSFT remains attractive for long-term compounding, with projected earnings per share (EPS) growth averaging 18% through FY29.