Microsoft market cap hit $4 trillion in after-hours trading on Wednesday following better-than-expected earnings in the April to June quarter, driven by rapid expansion in Azure and other cloud services. The US tech giant’s strong financial results helped its stock price surge by 8.28 percent to $555.74 after markets closed.
If this momentum continues into Thursday’s trading session, Microsoft will become only the second company after Nvidia to surpass the $4 trillion market capitalization mark.
According to the company’s quarterly report, Microsoft’s net income rose to $27.23 billion in the fiscal fourth quarter ending June 30, marking a 24 percent increase compared to $22.04 billion in the same period last year. Revenue jumped 18 percent to reach $76.44 billion, up from $64.7 billion a year earlier.
Earnings per share also saw a 24 percent rise year-on-year, hitting $3.65 for the quarter. The numbers exceeded market analysts’ expectations, boosting investor confidence.
The company’s growth was largely fueled by its server products and cloud services, which posted a 27 percent revenue increase. Azure and other cloud services saw an impressive 39 percent rise in earnings during the quarter.
Meanwhile, revenue from Microsoft’s Productivity and Business Processes segment, which includes Office software and LinkedIn, stood at $33.11 billion, up 16 percent year-on-year. The More Personal Computing division, which covers Windows, gaming, gadgets, and search advertising, generated $13.45 billion in revenue, reflecting a 9 percent increase.
Microsoft also reported $1.71 billion in other expenses during the quarter, which includes known losses on equity method investments such as OpenAI. This is significantly higher than the $623 million in similar expenses recorded in the previous quarter.
With strong performance across its business segments, Microsoft market cap hitting $4 trillion signals the company’s growing dominance in the global tech landscape.