Microsoft Stock Soars 37.7% in Q3, Azure Growth Revives AI Optimism

Microsoft's stock surged 37.7% from July to September, marking its strongest quarterly performance since 1998.

The rally comes after a sharp turnaround for Microsoft, which saw its stock fall 22.5% in the first half of the year, its worst half-yearly performance since 2022.

Azure growth accelerated to 43% in Microsoft's fiscal fourth quarter, while the company guided to 45% growth for Q1 2027.

OpenAI's Dots launch provided another positive read-through for Microsoft, as it will integrate with Microsoft Agent 365, its control plane for AI agents designed for IT and security administrators.