Microsoft cut its capex forecast and posted its best day since 2008

On July 29, 2026, Microsoft informed its shareholders that cloud computing and AI had actually helped the company during its fiscal fourth quarter. The next day, Wall Street reacted by giving Microsoft its biggest rise in a single day since 2008, a 15.5% gain that added roughly $480 billion in market value.

It is the year’s most direct answer to those still questioning whether investments in AI can produce any results reflected in the company’s financial reports. The answer arrived with a wrinkle most of the coverage skipped. Microsoft also cut its spending forecast.

The number the market rewarded

Microsoft put cloud and Artificial Intelligence front and center in announcing its earnings. The company’s July 29, 2026, investor announcement was titled “Microsoft Cloud and AI Strength Fuels Fourth Quarter Results,” which makes it clear what the management thinks is the key to the company’s growth.

The figures behind that title held up. Azure growth accelerated to 43% from 40% the prior quarter, ahead of the roughly 40% Wall Street had modeled, and Satya Nadella used the earnings call to disclose that Azure revenue crossed $100 billion for the full fiscal year for the first time, up 41%, per CNBC.

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