Microsoft Nears $4T Cap Pre-Earnings as MSFT Stock Closes at Record High
Despite contentious layoffs, Microsoft is doubling down on AI as its shares soar to all-time highs ahead of its impending Q4 earnings.
Quick overview
- Microsoft's stock has reached an all-time high of $518.29, boosting its market valuation to $3.81 trillion.
- Despite laying off 9,000 employees to prioritize AI investments, Microsoft is positioning itself for leadership in the rapidly evolving tech landscape.
- The company is set to report fiscal Q4 earnings on July 30, with analysts projecting a revenue increase of 13.88% year-over-year.
- The Intelligent Cloud division continues to drive growth, with Azure expected to see a significant revenue increase of 34% to 35%.
Live MSFT Chart
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Despite contentious layoffs, Microsoft is doubling down on AI as its shares soar to all-time highs ahead of its impending Q4 earnings.
Stock Soars to Record Highs
Microsoft Corporation (NASDAQ: MSFT) has reached a new all-time high of $518.29, lifting its market valuation to $3.81 trillion. This follows a late-June breakout above the $500 mark and a strong rebound after a brief midweek dip, where the 20-day simple moving average acted as a reliable support zone. The stock closed the week on a bullish note, underscoring continued investor confidence in the tech giant’s performance and future prospects.
MSFT Chart Daily – Strong Upside Momentum Since April
Over the past 12 months, Microsoft shares have gained 21%, supported by a 14.1% increase in revenue and a robust gross margin of 69%. Analysts remain bullish, with price targets ranging widely from $432 to $700 — a reflection of strong long-term expectations for the broader technology sector.
Layoffs for AI: Focus Reshape Microsoft’s Strategy
The recent surge in Microsoft’s stock price comes even as the company made headlines for laying off 9,000 employees, including a significant number from its Xbox division. CEO Satya Nadella addressed the workforce via email, stating that the layoffs were necessary to prioritize AI investments — a tradeoff the company had to make between expanding AI capabilities and maintaining headcount.
Despite criticism, the move signals Microsoft’s aggressive shift toward AI infrastructure and services, positioning the company for leadership in a space that’s rapidly transforming enterprise software and cloud computing.
All Eyes on Fiscal Q4 Results
Microsoft is set to report its fiscal fourth-quarter 2025 earnings on July 30. The revenue consensus stands at $73.71 billion — a projected 13.88% year-over-year increase. Analysts also expect earnings of $3.35 per share, reflecting a 13.56% annual growth rate.
The company’s strategic product rollouts and platform expansion during the quarter are anticipated to contribute to solid results. Microsoft has guided that revenue in its Productivity and Business Processes segment will land between $32.05 billion and $32.35 billion, driven by continued momentum in Microsoft 365 Commercial, with LinkedIn expected to grow at a high single-digit pace.
Cloud Continues to Power Growth
The Intelligent Cloud division remains Microsoft’s dominant growth driver. Sales for this segment are projected to reach $28.75 to $29.05 billion, with internal models forecasting $28.89 billion — a 21.5% year-over-year jump. Azure is again the standout performer, with constant currency revenue expected to rise between 34% and 35%.
These forecasts reinforce the company’s cloud-first growth trajectory and highlight Azure’s expanding influence in enterprise infrastructure, which continues to draw investment attention.
Conclusion: Momentum Builds Ahead of Key Catalyst
As Microsoft approaches its next earnings release, the stock’s new highs reflect not just strong fundamentals but a broader bet on AI dominance and cloud scalability. While layoffs have sparked internal unease, Wall Street remains focused on future earnings potential, platform innovation, and strategic capital allocation — all of which appear to be aligning in Microsoft’s favor.
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