Microsoft's Massive Post-Earnings Rally Puts These ETFs in Focus

MSFT shares jumped 15.51% on July 30 following its fourth-quarter fiscal 2026 results, adding approximately $483 billion in market capitalization during the day, per Fortune, as quoted on Yahoo Finance.

Azure Crosses Historic Milestone

CEO Satya Nadella announced that Azure generated more than $100 billion in annual revenues in fiscal 2026 for the first time. The company expects Azure revenues to grow 45% in constant currency during the ongoing first-quarter fiscal 2026, which ends in September, per Fortune as quoted on Yahoo Finance.

This guidance convinced investors that Microsoft's enormous AI investments are beginning to generate meaningful revenues.

AI Spending Shows Results

For months, investors questioned whether Microsoft's enormous spending on AI infrastructure would produce sufficient returns.

MSFT extended the useful life of its data center buildings from 15 to 25 years (per pluang.com).

Zacks Consensus Estimates for Microsoft

The Zacks Consensus Estimate for Microsoft's first-quarter of 2026 earnings per share (EPS) stands at $4.67, suggesting 13.08% year-over-year growth. For the fiscal year, the consensus EPS estimate is pegged at $19.51, indicating an 8.69% year-over-year rally.

The Zacks Consensus Estimate for revenues stands at $90.23 billion, implying a 16.17% year-over-year rise. For the fiscal year, the consensus estimate for revenues is at $388.38 billion, suggesting year-over-year growth of 17.04%.

Microsoft-Heavy ETFs in Focus

MSFT remains one of the largest holdings across numerous technology and AI-focused ETFs. This recent outperformance provides a boost to the appropriate ETFs.

Global X PureCap MSCI Information Technology ETF GXPT is designed to give investors exposure to the U.S. information technology sector. Microsoft holds a weightage of 13.52% in this fund.

GXPT shares rose 4.83% on July 30. The fund charges an expense ratio of 0.15%. It trades at an average daily volume of 180,000 shares. The fund has an AUM base of $147.50 million and a Zacks ETF Rank #2 (Buy).

Vanguard Information Technology VGT is one of the popular U.S. technology ETFs, offering low-cost exposure to a wide range of IT companies with a strong emphasis on semiconductors, hardware and software.

Microsoft holds a weightage of 8.28% in this fund. VGT has assets under management worth $137.78 billion and an expense ratio of 0.09%. The fund trades at an average daily volume of 5 million shares. The fund has risen about 5% on July 30. VGT presently sports Zacks ETF Rank #1 (Strong Buy).

Amplify Video Game Leaders ETF GAMR invests in companies across the global video gaming ecosystem that includes companies involved in game development, GPUs, gaming platforms, mobile games, hardware and metaverse-related technologies.

Microsoft holds a weightage of 10.85% in this fund. The fund grew 2.57% on July 30. GAMR has an expense ratio of 0.59% and trades at an average daily volume of 1,156 shares. The fund has assets under management worth $37.4 million.

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This article originally published on Zacks Investment Research (zacks.com).

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