Microsoft Stock Rises Ahead Q4 Earnings on AI, Cloud Growth Outlook

Microsoft is set to report its fiscal fourth quarter 2025 earnings with Wall Street anticipating strong growth driven by AI and cloud services, particularly Azure, which has seen record revenue growth fueled by AI sales. Analysts, including Citi's Tyler Radke, expect modest beats in key performance indicators and continued robust Azure consumption growth, though growth may slightly decelerate compared to previous quarters. The company’s partnership with OpenAI has been a major driver of this momentum, contributing significantly to Azure’s revenue increase, but the renegotiation of this deal amid OpenAI’s plans to go public and partnerships with rivals like Google and Oracle introduces uncertainties. Despite this, investor confidence remains high due to Microsoft’s leadership and strategic positioning in AI, with projections indicating stronger AI-related growth in fiscal 2026. Microsoft's CEO Satya Nadella and CFO Amy Hood have emphasized innovation across AI infrastructure and applications as central to the company’s expansion, with recent workforce reductions expected to improve profitability. Overall, Microsoft’s AI and cloud businesses remain key growth engines, but investors will closely watch the impact of evolving OpenAI relations in upcoming earnings.