Microsoft’s stock surged as much as 17% on Thursday, reaching above $455 per share and marking its largest single-day gain since 2008. The rally added about $480 billion in market value in one day, following the company’s fiscal year 2026 fourth-quarter results released on Wednesday. The stock closed Wednesday at $390.54 before jumping to $456 in afternoon trading on Thursday, reflecting renewed investor confidence in Microsoft’s cloud and AI business growth, according to fortune.com.
The surge came after Microsoft reported quarterly revenue of $90 billion, exceeding analyst expectations by $2.4 billion and representing a 17.7% increase from the previous year. Earnings per share were $4.74, while Azure revenue surpassed $100 billion for the first time. Microsoft Cloud revenue grew 27% year-over-year to $59.3 billion. CEO Satya Nadella and CFO Amy Hood’s strategy to capitalize on an estimated $190 billion AI spending this year appears to be driving the strong results, as noted during the earnings call by Hood, who delivered upbeat forward guidance, fortune.com reported.
This rally contrasts with other major tech companies that posted strong earnings but did not see similar stock gains, such as Samsung and Meta. Market strategists noted that while Microsoft’s results were impressive, the broader market remains cautious about AI sector returns. Steve Sosnick, chief strategist at Interactive Brokers, described the market as being in a volatile mode, with rapid shifts in sentiment that are not fully explained by fundamentals. Microsoft’s performance highlights its growing dominance in cloud computing and AI, sectors that are attracting massive investment globally, according to fortune.com.
Microsoft’s stock increase on Thursday represents the largest single-day gain in nearly two decades, adding nearly half a trillion dollars in market capitalization. The company’s next earnings report is scheduled for October, when investors will assess whether this momentum in cloud and AI revenue growth continues, as detailed by fortune.com.