Microsoft Azure revenue growth

by | Jul 30, 2025 | The Doctor's Dose

Microsoft Surges Toward $4 Trillion Market Cap on Blowout Earnings and Cloud Growth

Microsoft (MSFT) is on the brink of making history again. Following a blockbuster fourth-quarter earnings report, the tech titan is poised to become the second U.S. company to reach a $4 trillion market capitalization—joining Nvidia in the exclusive club.

🔹 Q4 Earnings Crush Estimates

For its fiscal Q4, Microsoft reported:

  • Adjusted EPS: $3.65 vs. $3.37 expected

  • Revenue: $76.4 billion vs. $73.9 billion expected

  • Cloud Revenue: $46.7 billion, up 27% YoY

The beat was largely fueled by Microsoft Azure, which posted a 39% year-over-year revenue increase, outpacing analysts’ expectations of 35% and accelerating from the prior quarter’s 33% growth. For the full year, Azure revenue climbed to $75 billion, up 34% from 2024—solidifying Microsoft’s role as a global cloud leader.

🔹 The AI and Cloud Engine

Investor enthusiasm is being driven by two powerful engines: cloud computing and AI infrastructure. Azure’s performance, which is closely tracked as a bellwether of Microsoft’s enterprise strategy, underscores rising enterprise demand for cloud services amid the AI arms race.

The strong report follows a similarly impressive showing from Google Cloud, highlighting a broader trend in hyperscaler momentum.

🔹 Big Spending, Bigger Returns

Microsoft’s capital expenditures soared to $24 billion in Q4, well ahead of the $21.4 billion estimate. The company is pouring resources into building the infrastructure needed to support AI applications and large-scale cloud deployments.

While this figure will grow in the near term—$30 billion in capex is projected for Q1 2026—CFO Amy Hood assured investors that spending growth will moderate compared to fiscal 2025. Still, the company anticipates double-digit revenue and operating income growth in fiscal 2026.

🔹 Market Reaction and Milestone Watch

Shares surged 8.5% in after-hours trading, climbing to $556.60—well above the $538.13 threshold for Microsoft to hit a $4 trillion valuation. If gains hold through the next trading session, the software and cloud giant will become the second company ever to reach that valuation, trailing only Nvidia.

Year to date, Microsoft stock is up 22%, reflecting consistent investor confidence in its strategic pivot toward AI-powered services and cloud-first enterprise solutions.

🔍 Key Takeaway

Microsoft Azure revenue growth is once again proving to be the cornerstone of Microsoft’s market dominance. With record-setting capex, accelerating cloud adoption, and bullish guidance for 2026, Microsoft’s momentum seems unstoppable.

📈 As James Ambrose, director of Microsoft Investor Relations, put it:
“We closed out our fiscal year 2025 with a strong quarter that significantly exceeded expectations, driven by continued strong demand for our cloud and AI services.”