Microsoft Market Value Surges $490 Billion After Azure Growth

Shares of Microsoft Corp. surged as much as 17% on July 31, 2026, adding $490 billion to its market capitalization by 12:55 p.m. in New York. This jump would surpass the previous record of $440 billion held by Nvidia Corp. The market reaction followed fiscal fourth-quarter results that exceeded analyst expectations, with the company reporting revenue of approximately $90 billion, an 18 percent year-over-year increase, and adjusted earnings per share of $4.74 against a $4.24 estimate.

The growth was driven by the Azure cloud unit, which saw revenue grow 43 percent year-over-year and surpass $100 billion for the full fiscal year for the first time. CEO Satya Nadella disclosed that the company's AI business is operating at a $37 billion annual pace, a 123 percent year-over-year increase, while Microsoft 365 Copilot reached over 30 million paid seats. The company also recorded a $3.2 billion gain from its investment in the AI lab Anthropic.

Despite the gains, investors raised concerns over infrastructure spending, with Microsoft spending approximately $190 billion in calendar 2026. Quarterly capital expenditures rose 70 percent year-over-year to $41 billion, primarily for chips. For the first quarter of fiscal 2027, Microsoft issued revenue guidance between $89.85 billion and $90.95 billion.