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Shares of Microsoft extend gains to 7% after hours on capex guide
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Microsoft shares are up 7% after hours with most of the gains coming in the past few minutes on the capex headlines, not the beat.
Q4 adjusted EPS of $4.74 crushed the $4.24 estimate and revenue of $90.0 billion beat $87.6 billion expected.
Azure surpassed $100 billion in revenue for the first time this fiscal year; total cloud revenue for the year topped $214 billion.
Nearly 90% of cloud revenue comes from customers outside frontier model companies — a direct answer to the circular-revenue critique.
One item deserves a skeptical eyebrow: effective at the start of FY27, Microsoft is extending the estimated useful life of its data centers and office buildings from 15 to 25 years.