Microsoft Surges 15% on Upbeat Results and Capex Forecast, Lifting US Indexes
MSFT sits 29% above its 52-week low of $349.2.
Summary
Microsoft shares are surging about 15% in early trading, giving major indexes their biggest boost, after the company reported strong Q4 results and provided a capital expenditure forecast below Wall Street estimates. The upbeat report, which included an accounting change for data center leases, eased investor concerns about the payoff of massive AI spending. The rally extends the positive reaction seen in premarket trading, with the Nasdaq up more than 2% and semiconductor stocks also sharply higher. This follows Microsoft's blowout FY26 earnings and 10-K filing yesterday, which showed 18% revenue growth and 41% Azure growth. The market is now pricing in confidence that Microsoft's AI investments will generate sustained cash flow.
At the time of this announcement, MSFT was trading at $450.62 on NASDAQ in the Technology sector, with a market capitalization of approximately $3.3T. The 52-week trading range was $349.20 to $555.45. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.