Microsoft’s latest quarterly results have sent ripples through the broader investment market, driving gains across a wide range of exchange-traded funds. Azure cloud and the Copilot business posted strong growth, pushing earnings beyond analyst expectations and reinforcing the company’s status as a leader in AI infrastructure. The report arrived amid scrutiny of peers over spending, making the numbers influential for investors tracking the technology sector.
The tech giant posted earnings per share of $4.74 on revenue of $90 billion, reflecting growth of 30% and 18% respectively from the same period last year. These figures beat consensus estimates of $4.25 per share and $87.7 billion in revenue. Management maintained disciplined spending and held forward capex guidance steady. Microsoft spent $41 billion on capital expenditures during the quarter, coming in slightly below Wall Street expectations of $42 billion. Earlier in the year, the company announced forward capex guidance of $190 billion.
Management reiterated this guidance, explaining that the headline $175 billion number reported this quarter stems from an accounting correction in lease and depreciation schedules rather than a pullback in AI infrastructure spending. This distinction was critical for investors concerned about the company’s financial stability. Free cash flow for the quarter came in at $19.6 billion, exceeding analyst estimates of $13.44 billion. The results sparked momentum in the broader ETF market.
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Large-cap growth ETFs such as the Invesco QQQ Trust Series I hold a heavy Microsoft allocation, with the stock representing 4.93% of the portfolio. Tracking the Nasdaq-100 Index, QQQ provides exposure to the 100 largest non-financial companies listed on the Nasdaq. The fund jumped 2.90% the day after the report and has returned 7.97% year to date with inflows of $5.84 billion over the same period.
The Vanguard Growth ETF holds Microsoft at a 7.59% portfolio weight. This fund provides market-cap weighted exposure to large-cap U.S. growth stocks by tracking the CRSP U.S. Large Cap Growth Index. VUG gained 2.29% the day after the earnings report and has returned 1.06% with inflows of $6.01 billion in 2026. Microsoft is a 6.16% allocation in the Schwab U.S. Large-Cap Growth ETF (SCHG). Tracking the Dow Jones U.S. Large-Cap Growth Total Stock Market Total Return Index, the fund aims to provide low-cost exposure to large-cap U.S. equities that exhibit strong growth potential. SCHG gained 1.32% following the report and has returned 2.12% with inflows of $4.40 billion year to date.
While broad large-cap ETFs offer diversified exposure across various sectors, sector-specific ETFs experience an even tighter correlation to Microsoft’s earnings performance. The State Street Technology Select Sector SPDR ETF offers exposure to the information technology companies in the S&P 500 by tracking the S&P Technology Select Sector Index. Microsoft is currently an 8.50% weight in XLK, making it the fund’s third largest allocation behind Apple and Nvidia. The fund has risen 4.45% since the report, bringing its year-to-date gain to 14.98% alongside $3.04 billion in net inflows.
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Also targeting the information technology sector, the Vanguard Information Technology ETF holds Microsoft at an 8.28% portfolio weight. VGT provides exposure to over 300 stocks in the IT industry by tracking the MSCI US IMI 25/50 Information Technology Index. The fund has risen 4.45% since the report and has gained $3.04 billion in new assets and climbed 14.98% year to date. The iShares Expanded Tech-Software Sector ETF holds Microsoft as the fund’s second largest allocation at 8.40%. The fund tracks the S&P North American Technology-Software Index, providing targeted exposure to North American equities in the software industry. IGV gained 0.23% following the announcement and has lagged behind large-cap ETF counterparts returning -12.59% over the course of the year. Despite underperforming relative to the broader market, IGV has maintained strong inflows gaining $5.83 billion in new assets so far in 2026.
Microsoft held quarterly dividends flat at $0.91 per share in its latest earnings, aligning with its tradition of announcing dividend adjustments in September. Having increased its payout for 21 consecutive years since 2004, Microsoft remains a cornerstone holding in many dividend-focused funds. The Vanguard Dividend Appreciation ETF offers exposure to dividend paying large-cap companies that exhibit growth characteristics within the U.S. equity market. Tracking the S&P U.S. Dividend Growers Index, constituents are required to have 10 consecutive years of increased dividend payouts. VIG has gained 9.43% in 2026 and has received $419.81 million in inflows over the same period, with Microsoft currently sitting at 3.50% portfolio weight.
Taking a forward-looking approach to dividend growth, the WisdomTree US Quality Dividend Growth Fund targets companies with a high return on equity, return on assets, and earnings growth. Tracking the WisdomTree U.S. Quality Dividend Growth Index, companies are weighted based on their cash dividends with the fund notably excluding past dividend growth requirements for inclusion. DGRW has climbed 7.09% year to date, with Microsoft currently receiving a 6.02% portfolio allocation.
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