Satya Nadella's Microsoft Stock Jumped 18% in a Week After Azure's Annual Revenue Topped $100 Billion for the First Time. Is It Still a Buy?

Microsoft (MSFT) surged 18% in the week following its fiscal Q4 2026 earnings, propelled by Azure crossing $100 billion in annual revenue for the first time. The cloud platform posted 43% growth, anchoring overall company revenue expansion of 18% to $90 billion for the quarter.

Net income climbed 31%, while Microsoft 365 Copilot cleared a significant adoption milestone with more than 30 million paid seats. The AI-powered productivity tool's traction underscores enterprise demand for the company's generative AI stack.

The rally pushed MSFT's forward price-to-earnings ratio to 25x, up from 19x before the earnings release. Analysts project 15-16% annual earnings growth over the next three to five years, a discount to the current valuation multiple that suggests limited downside if the company meets consensus expectations.