# Microsoft stock just cleared a big hurdle but still trails the S&P 500 > Source: > Published: 2026-08-11 13:08:43+00:00 Microsoft ([MSFT](https://finance.yahoo.com/quote/MSFT/)) stock is back in favor with Wall Street. **The AlphaSpace analysis: **Shares of Microsoft are now trading above their key 200-day moving average by the widest margin since October, according to [Yahoo Finance AlphaSpace](https://finance.yahoo.com/about/promos/gold/alphaspace?100003557) analysis. The stock is still lagging the S&P 500 ([^GSPC](https://finance.yahoo.com/quote/^GSPC/)) year to date, notching a 4.7% gain compared to a 13% rise for the benchmark index. Microsoft's stock has relatively underperformed for the bulk of 2026 amid concerns of overspending on AI. However, the narrative has begun to shift. **What else you need to know: **Microsoft's [fiscal fourth quarter earnings](https://finance.yahoo.com/markets/stocks/article/microsoft-stock-surges-on-strong-quarter-record-cloud-revenue-123002444.html) recently shut up the bears, which largely explains why the stock has fallen back into the good graces of Wall Street. The tech titan posted a staggering $90 billion in revenue in Q4, up 18% year over year. Azure and other cloud services growth surged 43%. To put that in perspective, Azure officially crossed the noteworthy $100 billion annual revenue milestone, proving that enterprise clients aren't just experimenting with AI; they are deploying it at scale. In other words, Microsoft is monetizing its AI. "Revenue visibility is strong, suggesting upside to estimates," Bank of America analyst Tal Liani wrote in a note. The company also demonstrated operating leverage, increasing operating income by 18% to $40.6 billion while significantly building out its data center capacity. CFO Amy Hood gave Wall Street confidence by pairing disciplined expense control with a whopping $10.2 billion cash return to shareholders via dividends and buybacks in the quarter alone. It also didn't aggressively raise its capital expenditure plans like others in Big Tech, such as Alphabet ([GOOG](https://finance.yahoo.com/quote/GOOG/), [GOOGL](https://finance.yahoo.com/quote/GOOGL/)) and Meta ([META](https://finance.yahoo.com/quote/META/)). Profit estimates have trended higher since the late-July earnings report, according to Yahoo Finance AlphaSpace data. **The bottom line: **The bulls are back in the driver's seat on Microsoft. Don't expect them to give up the wheel for a little while. *Brian Sozzi** is Yahoo Finance's Executive Editor, host of the '**Power Players With Brian Sozzi'** podcast and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X** @BrianSozzi**,** Instagram**, and** LinkedIn**. Tips on stories? Email brian.sozzi@yahoofinance.com.* **Click here for in-depth analysis of the latest stock market news and events moving stock prices** **Read the latest financial and business news from Yahoo Finance**