Microsoft's Earnings Report Surpasses Expectations, Surging 8.8% in After-Hours Trading, While Also Becoming the First Major Tech Company to Slightly Reduce Capital Expenditure for FY2027

BlockBeats News, July 30th, Microsoft (MSFT.O) reported a revenue of $90 billion for the fourth quarter of the 2026 fiscal year, a significant increase of 17.7% year-over-year (compared to $76.441 billion in the same period last year), well above the market's expected $87.63 billion. Key highlights of the data:

Capital expenditure for Q4 reached $41 billion

Cloud business revenue was $59.3 billion

Revenue from Azure and other cloud services (excluding exchange rate impact) grew by 43%, surpassing market expectations

Azure cloud business revenue was $39.3 billion, with a growth rate of 43%

Free cash flow was $19.6 billion, a 23% year-over-year decrease

Microsoft CEO Satya Nadella stated: "Azure business revenue exceeded $100 billion for the first time, and Microsoft 365 Copilot paid seats have surpassed 30 million, reflecting customers' confidence in our AI transformation capabilities."

Of note, Microsoft became the first major tech company to slightly reduce its 2027 fiscal year capital expenditure (from $190 billion to $175 billion). As of the time of writing, Microsoft's stock surged by 8.8% after hours, pushing its market value to $2.90 trillion.