Microsoft just reminded everyone why it sits at the center of the AI trade. The company posted Q4 2026 revenue of $90 billion, up 18% year-over-year, with net income climbing 31% to $35.8 billion. The market’s response was swift: shares jumped as much as 15.5% in premarket trading.
The real headline inside those numbers was Azure. Microsoft’s cloud division grew 43% in the quarter, a figure that signals enterprises are not just experimenting with AI workloads — they’re committing to them at scale.
What drove the move
Microsoft’s management paired the strong results with a forward-looking commitment to spend roughly $175 billion on AI infrastructure in calendar 2026.
The other story: a hedge fund fire sale
