Microsoft Shares Rebound as Azure Cloud Revenue Surges

Microsoft Corporation shares recovered significantly from a June 2026 low of $352.83, rising approximately 46% to reach roughly $516. This rebound places the stock within 6% of its October 2025 record close of $542.07.

The recovery followed a July 29 fiscal fourth-quarter report showing that Azure and other cloud services revenue grew 43% for the quarter ended June 30, exceeding previous management predictions. Chief Financial Officer Amy Hood attributed this acceleration to efficiency gains and the rapid monetization of new capacity.

Despite the revenue growth, the company maintains aggressive spending on artificial intelligence infrastructure. Capital expenditures rose 69% year-over-year to $41 billion in the June quarter. Microsoft expects calendar 2026 spending to reach approximately $175 billion, partly due to accounting changes. This investment strategy contributed to a decline in annual free cash flow to approximately $67 billion. The company's partnership with OpenAI generated $24.1 billion of Microsoft's fiscal 2026 revenue.