Shares surged 13.8% to ARS 23,540 as investors digested a blowout quarter that silenced — at least temporarily — the debate over whether Microsoft's colossal AI spending is paying off. Revenue hit $90 billion, up 18% year-over-year, with net income of $35.8 billion and earnings per share of $4.81.
Analysts had projected roughly $86 billion in revenue and $4.24 in EPS — meaning Microsoft beat on both lines by a wide margin.
• Azure Crosses $100 Billion, Proving AI Isn't Just Hype
Azure revenue surpassed $100 billion for the full fiscal year, while the company's AI-powered office assistant, Copilot for Microsoft 365, topped 30 million paid seats.
Azure grew 43% in Q4, and Microsoft expects that to accelerate to roughly 45% in the current quarter. That kind of sequential acceleration in a business this large is rare, and it's the single biggest reason the stock popped: it proves enterprise customers are converting AI experimentation into real, recurring spending.
• The Spending Bill Is Staggering — And Growing
Capital expenditures and finance leases for the quarter hit $41 billion, up 69% year-over-year.
For fiscal 2027, Microsoft guided roughly $175 billion in total capital spending — a figure that dwarfs most companies' entire revenue. The crucial question for shareholders: can revenue growth keep outrunning these costs? Management acknowledged operating margins are expected to decline slightly in fiscal 2027 , a yellow flag worth watching.
• A $678 Billion Backlog Suggests the Boom Has Legs
Commercial remaining performance obligations — essentially contracts already signed but not yet billed — skyrocketed 84% to $678 billion. This massive backlog functions as a forward-revenue cushion, giving investors confidence that today's spending will generate returns for years. Growth was driven by commitments from enterprise clients, not just AI model developers , suggesting demand is broadening beyond the initial wave of tech-on-tech spending.
• Weak Spots Lurk Below the Headlines
Xbox revenue fell 10% , device and Windows licensing sales dropped 7%, and industrywide PC shipments declined roughly 4%. These segments are small relative to cloud, but they remind investors that Microsoft isn't immune to a softening consumer economy. A $3.2 billion gain from Microsoft's stake in Anthropic also flattered headline EPS — strip that out, and the beat narrows meaningfully.
The bottom line: Microsoft just demonstrated that AI spending can produce real, measurable revenue growth at massive scale. Whether that justifies pouring $175 billion more into infrastructure — while margins slip — is the trillion-dollar question heading into fiscal 2027.