Microsoft shares soared 15.5% to $451.10 on Thursday following a strong fiscal fourth-quarter report, marking its largest daily gain since 2008. The quarter ended June 30, showcasing an 18% year-over-year revenue increase to $90 billion, with cloud revenue (Azure) climbing 43%.
Since Satya Nadella became CEO on February 4, 2014, Microsoft stock, which was at $36.35 at that time, has grown approximately 12-fold, turning a $10,000 investment into around $124,000. Including dividends, the value climbs to about $150,000. This performance outpaced the S&P 500, which quadrupled during the same period, with a $10,000 index investment worth about $52,000.
Under Nadella’s leadership, Microsoft’s revenue jumped from $86.8 billion in fiscal 2014 to $331.8 billion in fiscal 2026. Azure has become a significant revenue driver, surpassing $100 billion annually for the first time. The company also maintained a robust growth trajectory, with guidance suggesting continued Azure growth.
Currently, Microsoft’s stock trades at about 25 times earnings, reflecting reasonable valuation given its growth metrics. However, risks include heavy investments in data centers and potential cooling in Azure demand. Despite this, the underlying lessons from the Nadella era highlight successful repositioning around future opportunities, making Microsoft an attractive investment even at its current price.
