Microsoft reported fiscal fourth-quarter revenue of $90 billion, an 18% increase that surpassed analyst expectations of $87.7 billion, as the company's cloud and artificial intelligence businesses fueled stronger-than-forecast earnings.
The Azure cloud platform grew 43% in the quarter ended in late June, while adjusted earnings per share reached $4.81, well above the $4.25 consensus. Operating income totaled $40.6 billion.
Investors are now focused on the company's massive capital investment trajectory. Capital expenditures hit $41 billion in the quarter, bringing the full fiscal year total to roughly $145 billion. UBS raised its fiscal 2027 capex estimate to $261 billion, noting investor expectations already sit in the $255 billion to $260 billion range. Bank of America estimated Q4 capex including finance leases at about $42 billion. Shares traded 0.5% above opening levels on Wednesday morning ahead of the release.