Microsoft shares surge on earnings, adding record market value

2026-07-31

Microsoft shares surge

Microsoft shares in U.S. trading on the 30th rose as much as 17% intraday, and closed up 16% from the previous day. In the prior day's earnings, growth in the cloud business stood out, and a shift spread in views that advances in AI would become a headwind for its core business software.

Market value rises by $448 billion

According to QUICK FactSet, market capitalization rose by about $44.8 billion from the previous day on a closing basis, or about 72 trillion yen, lifting it above the $3.34 trillion range. The one-day increase surpassed Nvidia's on April 9, 2025, and was the largest on record.

Azure revenue up 43%

For the April-June quarter of 2026, revenue rose 18% from a year earlier to $90.007 billion. Revenue from Azure, the cloud platform used for AI computing, and other businesses rose 43%, marking the fastest pace of growth in about four years.

Room for a re-rating remains

Market capitalization still has not reached the roughly $3.6 trillion level seen at the start of the year. The company has long faced concerns that its heavy dependence on business software could weigh on profitability if AI were to replace it, but the latest earnings have prompted a reassessment.

Enjoyed this article? Share it with your network!