Shares of Microsoft (MSFT +3.02%) rose nearly 22% this past week after the tech titan reported impressive artificial intelligence (AI)-fueled growth metrics.
Image source: Getty Images.
Cloud gains
Microsoft's revenue jumped 18% year over year to $90 billion in its fiscal 2026 fourth quarter, which ended on June 30.
The gains were driven by the stunning performance of its cloud infrastructure platform, Azure, which saw sales soar 43%. CEO Satya Nadella said Azure's annual revenue topped $100 billion for the first time in fiscal 2026.
NASDAQ: MSFT
Key Data Points
AI features are boosting sales of Office apps
Microsoft's productivity and business processes division also saw solid gains, with revenue rising 14% to $37.8 billion in the fourth quarter.
Nadella highlighted the growth of the company's AI assistant for its popular office apps Word, Excel, and Teams.
"Microsoft 365 Copilot reached over 30 million paid seats, reflecting the confidence customers are placing in us to power their AI transformation," Nadella said.
Microsoft remains incredibly profitable
All told, the software maker's adjusted net income climbed 22% to $35.3 billion, or $4.74 per share. That handily surpassed Wall Street's estimates, which had called for per-share profits of $4.24.
Investors were also relieved to hear that Microsoft expects to remain free cash flow positive in fiscal 2027, even as the company ramps up its investments to meet the booming demand for its AI services.
