Microsoft Stock Jumps 15% as Azure Tops $100B
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Microsoft (MSFT) jumped more than 15% in early trading on July 30, 2026, after reporting Q4 earnings that beat Wall Street estimates on the top and bottom lines.
- Azure revenue topped $100 billion for the first time, with Microsoft's Intelligent Cloud segment delivering $39.3 billion versus expectations of $38.1 billion.
- Microsoft spent $41 billion on capital expenditures in the quarter — below the anticipated $42 billion — and left its 2026 capex plans unchanged, easing investor fears about AI-spending drag.
- Alphabet (GOOG, GOOGL) disclosed 2026 capex guidance of $195 billion to $205 billion, up from its prior $180 billion to $190 billion estimate and well above analysts' $186.4 billion expectation, sending its stock down more than 6%.
- Microsoft stock remains down 19% year to date despite Thursday's gain, underscoring how much ground the relief rally still has to recover.
Why it matters: Microsoft and Alphabet delivered the same underlying story — record cloud revenue and massive AI infrastructure investment — but drew opposite stock reactions because Microsoft kept its spending outlook steady while Alphabet raised its 2026 capex guide by roughly $15 billion at the top end. With MSFT still down 19% YTD even after a 15% surge, the relief rally shows the bar for satisfying AI-spending-worried investors has shifted toward predictability over ambition.
