Microsoft shares jump 8% premarket after strong Q2 earnings and AI-driven growth

Published Jul 30, 10:39 AM UTC

Microsoft shares surged 8% in premarket trading after the company issued stronger-than-expected revenue guidance for the current quarter and reported better-than-expected quarterly earnings. The upbeat results were driven by continued strength in cloud computing and AI businesses, with Azure revenue growing 43% year-over-year, beating analyst estimates of 39.98%. Microsoft's capital expenditure plans for calendar year 2026 remained broadly unchanged at $175 billion, easing investor concerns about AI infrastructure spending. The company reported adjusted earnings of $4.74 per share on revenue of $90.01 billion, exceeding expectations. CEO Satya Nadella noted that Azure revenue surpassed $100 billion for the first time and Microsoft 365 Copilot reached over 30 million paid seats. Analysts viewed the results as evidence that Microsoft is successfully monetizing its AI investments, contrasting with other tech giants facing larger spending pressures.