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Why Microsoft Stock Is Up Today

The Motley Fool·09/03/2026 23:20:08
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Key Points

  • Microsoft is finally disclosing Azure's quarterly revenue.

  • The numbers look good.

Shares of Microsoft (NASDAQ: MSFT) rose on Thursday after the technology titan announced that it would provide investors with more information about its fast-growing cloud computing business.

Microsoft's logo is displayed near a reflective surface.

Image source: Getty Images.

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Quantifying AI's impact on Azure

Artificial intelligence (AI) runs on the cloud. The AI race, in turn, has been a boon for Microsoft's Azure cloud infrastructure platform.

Microsoft is a key investor and partner of OpenAI and Anthropic. These and other leading AI model developers rely on Azure for a significant portion of their cloud computing needs.

At the same time, tens of thousands of customers use Azure to access AI models, applications, and development tools.

Yet while investors have long appreciated Azure's rapid pace of expansion, Microsoft has disclosed little beyond its growth rate. Until now.

Microsoft has finally begun to report Azure's quarterly revenue figures. And investors apparently like what they see.

Azure's revenue surged 42% year over year to $29.4 billion in its most recent quarter. That places it second only to cloud industry leader Amazon Web Services, whose revenue grew 37% to $42.2 billion in the quarter ended June 30.

Azure's growth is accelerating

Microsoft expects Azure's revenue to grow by 44% to 45% in constant currency in the current quarter, driven by soaring AI usage.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Microsoft. The Motley Fool has a disclosure policy.