Microsoft Cloud Growth Drives Stock Surge Amid Rising Capex Concerns

Microsoft's stock has surged 31.2% over the past three months, outperforming both its Computer - Software industry and the broader Computer & Technology sector.

The company's cloud business remains a key growth driver, with Azure and other cloud services revenues growing 43% year-over-year in its fiscal fourth-quarter results.

Management guided to Azure revenue growth of approximately 45% in constant currency for the first quarter of fiscal 2027, suggesting the cloud runway remains long despite the size of the business already built.

The Zacks Consensus Estimate for Microsoft's fiscal 2026 earnings is pegged at $19.62 per share, indicating 9.3% growth.