Overview

• The company reported fiscal Q4 earnings per share of $3.65 and revenue of $76.4 billion, topping Wall Street estimates and marking an 18% year-over-year increase.
• Microsoft’s Azure and other cloud services segment grew 39%, its fastest pace since 2022, driving over $75 billion in annual Azure revenue.
• Shares jumped nearly 5% after the earnings release, pushing Microsoft’s market capitalization past the $4 trillion threshold for the first time.
• To address compute shortages from rising AI workloads, Microsoft plans to allocate $30 billion in capital expenditures this quarter to build out data center capacity.
• Major ETFs with heavy Microsoft weightings, including the Vanguard S&P 500 ETF and Invesco QQQ Trust, traded at all-time highs following the stock rally.