Microsoft reclaims $4 trillion market cap as Azure growth revives investor confidence

Microsoft is back in the $4 trillion club. The company closed at a market capitalization of $4.02 trillion on October 12, 2026, its first sustained stay above that line since October 29, 2025. The rebound matters because it answers a question that has hung over the entire tech sector. Investors had been asking whether all that money poured into artificial intelligence would ever pay off. At least for Microsoft, the market now seems to think the answer is yes. How Microsoft got its groove back Microsoft shares have recovered by more than 50% from their lows in June 2026. The engine behind the rally is Azure, Microsoft’s cloud computing business. Azure revenue grew 43% year over year in the June quarter. Management expects that pace to pick up further. Guidance points to growth of 45% in constant currency, a measure that strips out the effect of exchange rate swings. Microsoft’s remaining performance obligations, or RPO, for cloud and AI contracts reached $678 billion, an increase of 84%. RPO is essentially revenue that customers have signed up for but Microsoft has not yet recognized. For investors worried about AI spending, that figure carried a lot of weight. It suggests enterpris...