Why Microsoft Stock Is Surging

Microsoft stock surged nearly 22% following strong quarterly earnings driven by AI-fueled growth. The company reported 18% year-over-year revenue growth to $90 billion, with Azure cloud services revenue jumping 43% and reaching $100 billion annually for the first time. Microsoft 365 Copilot exceeded 30 million paid seats, and adjusted net income climbed 22% to $35.3 billion, surpassing Wall Street estimates. The company also confirmed it will remain free cash flow positive in fiscal 2027 despite increased AI investments.