Microsoft Shares Rise 8% After Strong Q4 Results Exceed Expectations
Microsoft's (NASDAQ:MSFT) strong fiscal fourth-quarter results exceeded expectations across revenue, earnings, and Azure growth. Shares rose around 8% in after-hours trading following the announcement.
Morningstar maintained a $600 fair value estimate for Microsoft before the report, citing undervaluation. This estimate implies approximately 40% upside from the post-earnings trading level.
Revenue surged to $90 billion with an 18% year-over-year increase, outperforming the consensus estimate of $87.62 billion. Adjusted earnings per share reached $4.74, beating the projected $4.24. Net income grew 31% to $35.77 billion.
Azure and other cloud services revenue accelerated by 43% in constant currency, reaching $100 billion annually for the first time in fiscal 2026.