Microsoft Stock Surges on Strong Q4 Earnings and Cloud Growth

Microsoft's stock surged 24.6% in July, while the market was relatively flat. The company's strong quarterly results and rosy guidance were major catalysts for the increase.

The release of Microsoft's fourth-quarter fiscal 2026 earnings on July 30 sparked a 15.5% jump in its shares, followed by an additional 19% gain over the next two days.

Microsoft reported quarterly revenue of $90.0 billion, up 18% year-over-year, and net income of $35.3 billion, up 22%. Adjusted earnings per share increased 23% to $4.74, surpassing Wall Street's expectation of $4.24.

The growth was largely driven by Microsoft Cloud, with revenue increasing 27% year-over-year to $59.3 billion and commercial remaining performance obligation growing 84% to $678 billion.