Is Microsoft a Buy After Its Latest Earnings Report?

Microsoft reported better-than-expected Q4 2026 earnings with revenue and operating income up 18% YoY to $90 billion and $40.6 billion respectively. Azure cloud services showed impressive 43% YoY revenue growth. The company maintained its $175 billion annual capex forecast unchanged, differentiating itself from competitors Alphabet and Meta who increased spending guidance, causing Microsoft shares to rise 8% in after-hours trading.