Microsoft (NASDAQ: MSFT) shares jumped nearly 8% in premarket trading on Thursday after the tech giant delivered stronger-than-anticipated results for its financial fourth quarter. The exceptional performance came from strong growth in its pall and AI businesses, along with good prospects.
Azure profit grew at 39 times on time, above the Wall Street anticipation of 34, and went over $75 billion last time. This growth has been greatly attributed to the high demand for AI-related workloads.
Wedbush judges increased their price target for Microsoft from $600 to $625 with an emphasis placed on the company’s capability to subsidize on the AI revolution as enterprise spending builds.
For fiscal year 2026, Microsoft expects Intelligent Cloud profit to range between $30.1 billion and $30.4 billion, well above the road agreement of $29.42 billion.
Azure’s growth rate in constant currency is projected to remain around 37. Still, operation conceded that capacity- related constraints may persist through the first half of the time.
Capital expenditures for the first quarter of financial 2026 will probably go over $30 billion, corresponding to an annualized position of expenditure of roughly $120 billion in structure data centers and pall structure.
The results, judges observed, signify that Microsoft is entering a new growth phase driven by AI, with financial 2026 likely to be the defining time for both its pall and AI businesses.