Khadija Saeed

July 9, 2026, 9:01 AM EDT. Microsoft shares dropped 1.48% to $377.67 before the bell as the company heads into its Q4 results on July 29. Cloud revenue, which includes Azure, increased 29% to $54.5 billion. AI revenue has doubled, reaching an annual run rate of $37 billion, as Microsoft put more money into AI hardware and data centers. Still, costs are up, and that has some investors wary about the pace of cloud and AI spending. Wall Street mostly holds a positive view, with 40 out of 47 analysts rating it a buy, though several have cut price targets. Microsoft said it will cut 2.1% of its workforce to keep costs in check. Nasdaq futures edged higher, so the stock move isn't tracking with the broader market.