Microsoft's shares surged nearly 17%, marking their best day in almost 18 years, after the company reported better-than-expected Q4 results. Azure revenue grew 43% year-over-year, surpassing estimates, while paid Copilot users more than doubled sequentially to over 30 million. Management projects Azure growth of about 45% for Q1 fiscal 2027, well above analyst expectations, signaling strong demand for AI and cloud services. Analysts praised the results as validation of Microsoft's AI strategy, highlighting robust commercial cloud growth and improved profitability despite increased capital expenditures. Microsoft reported a strong fourth quarter with revenue up 17.8% year-over-year and accelerated Azure growth guidance of 45%. The company's commercial backlog surged 84% to $678 billion, driven by rapid monetization of its Copilot AI tool. Microsoft's post-earnings surge opened a high-probability income trade via an August short strangle options strategy, following a massive $450 billion market cap gain in one day.