Shares of Microsoft (NASDAQ: MSFT) surged 24.6% in July, dramatically outpacing a market that was essentially unchanged for the month.

The S&P 500 index edged down less than 0.1% during July, while the tech-heavy Nasdaq Composite declined 3.2%, making Microsoft’s performance all the more striking.

The rally carried additional significance given that Microsoft shares had been roughly 19% in the red for 2026 before the company’s earnings release late in the month.

Through August 4, Microsoft stock had returned 2.3% for the year, compared to a 13.8% return for the S&P 500 over the same period.

The single biggest catalyst came on July 30, when shares jumped 15.5% following the release of fourth-quarter fiscal 2026 results,…