Why Microsoft Stock Surged 24.6% in July While the Market Was Flat
Written by Beth McKenna for The Motley Fool -> In July, Microsoft stock's biggest catalyst was the release of strong quarterly results and rosy guidance. Investors were particularly pleased with ro…
In July, Microsoft stock's biggest catalyst was the release of strong quarterly results and rosy guidance.
Investors were particularly pleased with robust results in Microsoft Cloud, driven by strong demand for AI capabilities.
Shares of software and cloud computing giant Microsoft (NASDAQ: MSFT) soared 24.6% in July, according to data from S&P Global Market Intelligence .
For context, the S&P 500 index was essentially flat -- it edged down less than 0.1% -- while the tech-heavy Nasdaq Composite index declined 3.2%.
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Investors were no doubt particularly pleased with Microsoft's stock jump in July because shares had been about 19% in the red in 2026 before last week's earnings release. Through Tuesday, Aug. 4, Microsoft stock has returned 2.3% in 2026. The S&P 500 has returned 13.8% over this period.
On July 30, Microsoft stock jumped 15.5%, following the release of its results for the fourth quarter of fiscal 2026 (ended June 30) on the prior afternoon. Moreover, the stock gained 19% in the two days following this release.
Microsoft reported quarterly revenue of $90.0 billion, up 18% year over year. This result comfortably beat Wall Street's consensus estimate of $87.6 billion. Net income on a non-GAAP (generally accepted accounting principles) basis was $35.3 billion, up 22%. That translated to adjusted earnings per share (EPS) increasing 23% to $4.74. This result sprinted by Wall Street's expectation of $4.24.
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