Why Microsoft stock isn't getting crushed like Google stock after its earnings report

Live updates

1. 1h ago

   Microsoft Stock Defies Tech Slump on Cloud Growth

   Microsoft shares jumped 4% following a robust fiscal first-quarter earnings report that beat top and bottom-line expectations. The company posted a record quarterly revenue of $92.3 billion alongside a 32% increase in profit. Strong performance was anchored by accelerating artificial intelligence demand and a 48% surge in Azure cloud revenue, which brought in $33.2 billion in actual sales. The results helped Microsoft avoid the steep sell-offs experienced by rival tech giant Google after its own earnings announcement, as strong cloud efficiencies bolstered investor confidence despite heavier spending and recent job cuts.

   Why it matters

   The earnings report provides a critical health check on the massive capital investments major technology firms are channeling into artificial intelligence infrastructure. While both Microsoft and Alphabet are riding a wave of cloud expansion, investors are scrutinizing how these expenditures translate into bottom-line returns. Microsoft managed to soothe market jitters by demonstrating that its cloud segment is outpacing management forecasts, distancing itself from competitors facing harsher market corrections.

   What is confirmed

   • Microsoft stock jumped 4% after the company reported better-than-expected quarterly earnings and revenue.
   • Azure revenue grew by 48% to reach $33.2 billion.
   • Microsoft posted a record quarterly revenue of $92.3 billion and a 32% increase in profit.

   Still unconfirmed

   • Bernstein analysts claim Microsoft has over 31% upside in its stock price due to Azure efficiencies.

   What to watch next

   • Sustained Azure cloud growth rates in future quarters
   • Management updates on capacity delays and artificial intelligence spending efficiency
   Sources used for this update (22)

   1. Reuters — Microsoft beats quarterly cloud revenue estimates
   2. The New York Times — Microsoft’s Profit Jumps 32% Despite Big Increase in Spending
   3. CNBC — Microsoft will post earnings after the bell amid job cuts and new cash-flow test
   4. Yahoo Finance — Microsoft earnings live: Microsoft beats Q1 expectations on top and bottom line on AI growth
   5. CNBC — Microsoft stock jumps 4% as cloud growth drives earnings and revenue beat
   6. BBC — Microsoft posts $33.6bn profit after offering buyouts to one in four workers
   7. Microsoft — Press Release & Webcast
   8. Yahoo Finance — Why Microsoft stock isn't getting crushed like Google stock after its earnings report
   9. www.cnbc.com — Microsoft stock jumps 4% as cloud growth drives earnings and revenue beat
   10. Yahoo Finance — Microsoft’s Azure Efficiencies Could Boost Margins Despite Capacity Delays, Bernstein Says – Analyst Sees Over 31% Upside In MSFT Stock
   11. TechPowerUp — Microsoft Posts Record Q3 2026 Revenue of $92.3 Billion
   12. Yahoo Finance — Wall Street's top analysts are loving Microsoft's Q1 results
   confidence 100%