Microsoft Stock Surges 25% on Strong Earnings and Growth Prospects

Microsoft's stock price has seen a significant surge of 25% over the past three days following its blowout earnings report for Q4 FY26. The company reported revenue of $90.01 billion, up 17.75% year-over-year, with non-GAAP EPS of $4.74, beating consensus estimates by 11.81%. Azure's growth rate reached 43%, and commercial RPO ballooned to $678 billion, up 84% YoY.

The rally has been driven in part by the company's strong execution on its strategy, including the growth of Azure and Copilot. The extended OpenAI partnership is also seen as a key factor, with a $250B Azure commitment through 2032. However, some analysts have raised concerns about capex efficiency, with full-year FY26 capex reaching $115.95 billion, up 109.63% YoY.

Despite these concerns, the company's strong earnings and growth prospects are expected to continue driving its stock price upward. The 24/7 Wall St. price target of $573.79 represents a 23.47% upside over the next 12 months, with a buy rating at 90% confidence.