Microsoft added nearly $450 billion to its market value on Thursday, marking the largest single-day gain ever recorded by a company, after projecting stronger-than-expected cloud growth and signaling sustained cash generation in the new fiscal year.
The software giant’s shares surged more than 15 percent, pushing its market capitalization to $3.35 trillion and eclipsing chipmaker Nvidia’s previous record one-day market value increase of $441 billion, set on April 9, 2025, according to LSEG data.
Microsoft forecasts $50 billion capex for Q1 of fiscal 2027
The results provided fresh evidence that Microsoft’s heavy investment in artificial intelligence is starting to deliver returns, easing investor concerns that its substantial spending on data centers and computing infrastructure could outstrip demand.
Despite the strong performance, Microsoft had trailed several of its “Magnificent Seven” peers this year, with its shares down more than 18 percent through Wednesday’s close.
Following the earnings report, at least nine brokerages raised their price targets for the stock, bringing the average target price to $560.90.
Microsoft said its spending plans remain on track, forecasting capital expenditures of $50 billion for the first quarter of fiscal 2027 and approximately $175 billion for the 2026 calendar year.
The company also projected Azure revenue growth of 45 percent in constant currency during the first quarter, comfortably exceeding analysts’ expectations for a 40.92 percent increase.
Read: Apple overtakes Nvidia as world’s most valuable company
Revenue rises 18 percent to $90 billion
Microsoft reported a strong finish to its fiscal year, with fourth-quarter revenue rising 18 percent year-on-year to $90 billion, or 17 percent in constant currency, while operating income also increased 18 percent to $40.6 billion.
“We are advancing the frontier on the cost-to-outcome curve, ensuring every customer can turn tokens into business results,” said Satya Nadella, chairman and chief executive officer of Microsoft.
“This year, Azure revenue surpassed $100 billion for the first time, and Microsoft 365 Copilot reached over 30 million paid seats, reflecting the confidence customers are placing in us to power their AI transformation,” he added.
Net income climbed 31 percent on a GAAP basis to $35.8 billion, while non-GAAP net income rose 22 percent to $35.3 billion. The company said its quarterly results benefited from several one-off items, including a $3.2 billion gain from its investment in Anthropic and lower-than-expected costs related to its Voluntary Retirement Program, partially offset by severance and impairment charges in its Xbox business.
Excluding these factors, Microsoft said it still outperformed its own guidance on revenue, operating income and diluted earnings per share.
“We delivered a strong quarter to close out the fiscal year, highlighted by Microsoft Cloud revenue of $59.3 billion, up 27 percent year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.
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