Microsoft reported fourth-quarter revenue of $90 billion, topping analysts’ estimates of $87.6 billion, while earnings came in at $4.81 per share, well above the $4.24 consensus.

Azure revenue jumped 43%, helping ease investor concerns that the company’s massive AI spending was failing to generate returns.

The rally comes after a difficult stretch for Microsoft.

Just over a month ago, the stock was suffering its worst monthly performance since December 2000 as investors worried that soaring AI infrastructure spending would pressure free cash flow despite strong revenue and earnings growth.

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