Introducing Valuation Models! 
Key Stats for Microsoft Stock
- Price Change for MSFT stock: +8%
- Current Share Price: $555
- 52-Week High: $555
- Microsoft Stock Price Target: $550
What Happened?
Microsoft (MSFT) stock surged 8% after the tech giant delivered a blockbuster fiscal fourth-quarter earnings report that exceeded Wall Street expectations across all key metrics.
The company posted earnings per share of $3.65 versus the $3.38 consensus estimate, while revenue of $76.44 billion crushed expectations of $73.84 billion, representing 18% year-over-year growth, the fastest pace in over three years.
The standout performance came from Microsoft’s cloud computing business, with the Intelligent Cloud segment generating $29.88 billion in revenue (up 26%) and Azure growth accelerating to 39%, well above the expected 34-35%.
For the first time, Microsoft disclosed that Azure and other cloud services exceeded $75 billion in annual revenue, up 34% from the prior year.
Importantly, MSFT stock guided for 37% Azure growth in the coming quarter, above the 33.7% consensus.
Microsoft’s AI investments are clearly paying dividends, with CEO Satya Nadella revealing that Copilot products have reached 100 million monthly active users.
The company’s Microsoft 365 Copilot is driving higher revenue per user across commercial cloud products, demonstrating successful monetization of AI features that many investors have been waiting to see materialize.
See analysts’ growth forecasts and price targets for Microsoft (It’s free!) >>>
What the Market Is Telling Us About MSFT Stock
The surge in MSFT stock reflects investor enthusiasm for Microsoft’s ability to convert massive AI infrastructure investments into accelerating revenue growth.
Its guidance for over $30 billion in capital expenditures for the first quarter, potentially indicating over $120 billion annually versus the $100.5 billion consensus, signals continued confidence in AI demand despite supply constraints.
CFO Amy Hood’s admission that Microsoft expects to remain capacity-constrained through December, rather than achieving a better supply-demand balance as previously hoped, reinforces the strength of underlying demand.
With Microsoft’s cloud business showing no signs of deceleration and AI adoption accelerating across enterprise customers, investors are betting that its leadership position in the AI infrastructure race will drive sustained outperformance.
The MSFT stock climbed to $4.1 trillion in market capitalization, making Microsoft only the second company after Nvidia to cross the $4 trillion threshold, cementing its position as a primary beneficiary of the AI revolution.
Wall Street Analysts Are Bullish on These 5 Undervalued Compounders With Market-Beating Potential
TIKR just released a new free report on 5 compounders that appear undervalued, have beaten the market in the past, and could continue to outperform on a 1-5 year timeline based on analysts’ estimates.
Inside, you’ll get a breakdown of 5 high-quality businesses with:
- Strong revenue growth and durable competitive advantages
- Attractive valuations based on forward earnings and expected earnings growth
- Long-term upside potential backed by analyst forecasts and TIKR’s valuation models
These are the kinds of stocks that can deliver massive long-term returns, especially if you catch them while they’re still trading at a discount.
Whether you’re a long-term investor or just looking for great businesses trading below fair value, this report will help you zero in on high-upside opportunities.
Click here to sign up for TIKR and get our full report on 5 undervalued compounders completely free.
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
