Earnings Outlook
Microsoft showed that it’s monetizing AI and still can’t meet all the demand for its cloud business
Published: July 31, 2025 at 12:04 p.m. ET
Microsoft Corp. could become the second company ever to close with a $4 trillion market capitalization Thursday, as analysts heaped praise on what some see as a no-brainer investment.
The tech giant MSFT on Wednesday afternoon reported upbeat 39% growth in its Azure cloud-computing business during the fiscal fourth quarter, boosting Wall Street’s confidence in its artificial-intelligence opportunity. Along with Meta Platforms Inc.’s META AI-driven revenue beat, acceleration in Azure “is very additive to the AI bull thesis” that monetization of the technology is happening, Mizuho desk-based analyst Jordan Klein said in a Thursday note to clients. Both Microsoft and Meta issued guidance that “suggest zero moderation or slowdown to come,” Klein added.
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