Microsoft (NASDAQ:MSFT) shares rose more than 4% Thursday after the tech giant reported fiscal fourth-quarter results that surpassed analyst expectations, led by strong growth in its Azure cloud business.

Azure revenue surged 39% year-over-year, driving total quarterly revenue to $76.4 billion. Net income came in at $27.2 billion, or $3.65 per share, both exceeding Wall Street estimates.

For the full fiscal year, Azure generated more than $75 billion in revenue, representing 34% annual growth. CEO Satya Nadella credited widespread demand for AI-enabled services across all industries for the continued expansion.

Microsoft was praised by analysts for its strong AI momentum. Wedbush’s Daniel Ives called the quarter a “slam-dunk” as cloud and AI adoption drove meaningful business transformation.