Microsoft Corp. saw its market valuation rise in extended trading Wednesday after posting fiscal results that surpassed analyst projections for both profit and top-line growth. The software giant’s performance was bolstered by accelerating demand for its cloud infrastructure and a significant expansion in its generative artificial intelligence user base.
Investors responded positively to the report, with shares climbing approximately 9% to $426.03 in after-hours trading. For the period ending June 2026, the company generated $90.01 billion in revenue, an 18% year-over-year increase that exceeded the $87.62 billion anticipated by Wall Street. Net income reached $35.77 billion, with per-share earnings coming in at $4.81, beating the consensus estimate of $4.24. These figures were further influenced by a one-time unrealized accounting gain of $3.2 billion linked to an investment in the AI firm Anthropic, which saw its valuation reach $900 billion.
The company’s Intelligent Cloud division remained a primary growth engine, recording $39.31 billion in sales, a 32% rise from the previous year. Specifically, Azure and other cloud services revenue grew 43%, a feat CEO Satya Nadella attributed to the platform’s role in supporting corporate AI transformations. For the full fiscal year, Azure’s total revenue crossed the $100 billion threshold for the first time. In the software space, the Microsoft 365 Copilot assistant now counts over 30 million paying subscribers, while the GitHub Copilot tool has attracted more than 50 million users.
Despite industry concerns regarding high infrastructure costs, Microsoft maintained its capital expenditure guidance for the remainder of the 2026 calendar year. Quarterly spending on data centers and equipment reached $41 billion—a 69% jump from the prior year—but Chief Financial Officer Amy Hood indicated that long-term investment expectations remain steady at roughly $175 billion following accounting adjustments.
Other business units showed mixed results; the Productivity and Business Processes segment grew 14% to $37.85 billion, while the More Personal Computing division fell 4% to $12.85 billion, impacted by a 7% decline in Windows licensing and device sales.
Looking ahead to the first quarter of fiscal 2027, the company provided a revenue forecast between $89.85 billion and $90.95 billion, slightly ahead of market expectations. Management also signaled intentions to further increase capital outlays in the coming fiscal year to meet sustained interest in its technology portfolio.
