Microsoft (NASDAQ: MSFT) surged in pre-market trading on Thursday, climbing 8.41% to $556.38, after delivering a blockbuster fiscal FY25 Q4 earnings report that crushed Wall Street expectations and prompted major analyst upgrades.
The tech giant closed at $513.24 on Wednesday, up 0.13%, before announcing earnings that showcased the sheer scale of its cloud and AI-driven transformation. Q4 EPS came in at $3.65 vs. $3.38 consensus, while revenue hit $76.44 billion vs. $73.84 billion expected, representing 18% year-over-year growth.
Microsoft’s cloud engine continues to drive these results. Azure revenue soared to $75 billion annually, up 34% YoY, while Microsoft Cloud revenue climbed to $46.7 billion for the quarter, up 27% YoY.
CEO Satya Nadella emphasized the company’s infrastructure edge: “We continue to scale our own data center capacity faster than any other competitor,” he told investors, revealing Microsoft now operates more than 400 data centers across six continents.
Wall Street analysts set MSFT stock price target
Following the results, Jefferies raised its price target for Microsoft to $675 from $600, maintaining a Buy rating, citing Azure’s 39% YoY growth and “strong forward indicators.”
KeyBanc also upgraded Microsoft to Overweight from Sector Weight, setting a $630 price target, calling Azure’s acceleration and the absence of macro headwinds in fiscal Q4 key drivers for the bullish outlook.
With fiscal year revenue growth driven by AI and cloud adoption, Microsoft has solidified its position as a frontrunner in enterprise-scale artificial intelligence and cloud infrastructure. The company’s decision to reveal Azure’s $75 billion revenue figure underscores just how central the business has become to its long-term strategy and why analysts continue to see room for significant upside.
