Microsoft stock surges on strong quarter, record cloud revenue

Microsoft stock surges on strong quarter, record cloud revenue Ines Ferré and Daniel Howley Thu, July 30, 2026 at 3:45 PM GMT+2 1 min read MSFT What happened: Microsoft ( MSFT ) surged more than15% in early trading on Thursday. What's behind the move: The software and cloud giant reported fourth quarter earnings on Wednesday that beat Wall Street's estimates on the top and bottom lines as its Azure service topped $100 billion in revenue for the first time. Microsoft said it spent $41 billion on capital expenditures, including leases, in the quarter, below the anticipated $42 billion.

The company's Intelligent Cloud segment saw revenue of $39. 3 billion versus expectations of $38. 1 billion.

What else you need to know: Microsoft, like much of the tech industry, has been beset by concerns about aggressive capital expenditures and their impact on the company's free cash flow, as well as whether those investments are paying off in terms of improved revenue. Investors appear relieved that capital expenditures came in below expectations, and its plans for 2026 were unchanged. Last week, Google parent Alphabet ( GOOG , GOOGL ) said it plans to spend between $195 billion and $205 billion on capex for the year, up from its prior estimate of $180 billion to $190 billion and well ahead of analysts' expectations of $186.

4 billion. That sent Alphabet stock tumbling more than 6% on the day . Microsoft stock is down 19% year to date.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre .