Why Is Microsoft (MSFT) Up 12% Since Last Earnings Report?

Microsoft Corporation (MSFT.OQ) shares have climbed approximately 12% over the month following strong fourth-quarter fiscal 2026 financial results that exceeded Wall Street expectations. Non-GAAP earnings per share rose 23% year-over-year to $4.74, beating the consensus estimate by 12.59%, while total revenues grew 18% to $90 billion, driven by ongoing acceleration in enterprise cloud and artificial intelligence demand. The Intelligent Cloud segment posted a 32% revenue increase to $39.3 billion, powered by a 43% surge in Azure and related cloud services. Total Microsoft Cloud revenue expanded 27% to $59.3 billion, with commercial remaining performance obligations surging 84% year-over-year to $678 billion. Adoption of AI products also accelerated, with Microsoft 365 Copilot paid seats surpassing 30 million. Looking ahead, Microsoft guided first-quarter fiscal 2027 revenue to between $89.85 billion and $90.95 billion, representing 16% to 17% growth. Full-year fiscal 2027 capital expenditures are expected to reach roughly $175 billion under updated lease accounting treatments as infrastructure buildouts continue.