Microsoft has hit $4 trillion market capitalisation, making it only the second company after Nvidia to reach such a milestone.
On Wednesday, July 30th, Microsoft reported its fourth quarter earnings to the general public, when its market cap jumped to over $4 trillion.
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For the second ended quarter, the Tech Giant’s revenue upped to $76.4 billion, an increase of 18% (up 17% in constant currency). Its operating income rose to $34.3 billion, an increase of 23% (up 22% in constant currency). In a similar pattern, net income improved to $27.2 billion, an increase of 24% (up 22% in constant currency).
The chairman and CEO at Microsoft, Satya Nadella highlighted the main forces that move modern business success stories like his company. He stated that, “Cloud and AI is the driving force of business transformation across every industry and sector.”
Satya went further and stated:
“We’re innovating across the tech stack to help customers adapt and grow in this new era, and this year, Azure surpassed $75 billion in revenue, up 34 percent, driven by growth across all workloads.”
The executive vice president and chief financial officer of the Tech Company, Amy Hood also gave a hint about the rise in market valuation.
Amy said that, “We closed out the fiscal year with a strong quarter, highlighted by Microsoft Cloud revenue reaching $46.7 billion, up 27% (up 25% in constant currency) year-over-year.”
As of the close of the market on July 30th, Microsoft shares were up 22% for the year, topping the S&P 500’s 8% gain. Microsoft hit a record close of $513.71 on July 25. The stock was above $553 in extended trading. The Tech Giant reported 18% revenue growth, its fastest rate of expansion in over three years, which was driven by its Azure cloud computing business. Microsoft disclosed Azure revenue in dollars for the first time, and stated that sales from Azure and other cloud services were over $75 billion in fiscal 2025, a rise of 34% compared to 2024. The company’s Revenue in Productivity and Business Processes was $33.1 billion, an increase of 16% (up 14% in constant currency).
A breakdown of inflows revealed that Microsoft 365 Commercial products and cloud services revenue rose by 16% (up 15% in constant currency), driven by Microsoft 365 Commercial cloud revenue growth of 18% (up 16% in constant currency). Microsoft 365 Consumer products and cloud services revenue increased by 21%, which was driven by Microsoft 365 Consumer cloud at a revenue growth of 20 percent.
Furthermore, LinkedIn inflows rose by 9% (up 8% in constant currency). Dynamics products and cloud services revenue increased by 18% (up 17% in constant currency), driven by Dynamics 365 revenue growth of 23% (up 21% in constant currency). Revenue in Intelligent Cloud was $29.9 billion, an increase of 26% (up 25% in constant currency).
Other sources of financial inflows were Server products and cloud services revenue at 27% increase, also driven by Azure and other cloud services revenue growth of 39 percent. Revenue in More Personal Computing was $13.5 billion, an increase of 9 percent.
Nvidia and Microsoft, are the two Tech Giants that benefited mostly from the AI boom. Both are ahead of other big tech players like Apple on the market cap. Apple is currently third as per valuation, at about $3.2 trillion. The iPhone maker’s stock has fallen by 17% this year due to concerns raised by investors that Apple was not doing enough to up its game in AI revolution.
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In early July, EnterpriseCEO had reported that, Nvidia whose current valuation is over $4 trillion was just 5% shy of the International Monetary Fund’s (IMF) projected GDP for India in 2025, estimated at $4.187 trillion. That market capitalisation had made Nvidia the number one company to cross $4 trillion market valuation.
Microsoft, a Tech company that creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of its customers, is not setting boundaries for innovations. The Tech Giant’s goal is to make AI available to everybody in every part of the world. It is doing so responsibly, with a mission to empower every individual and organisation on the planet to achieve more.
Currently, it operates in 190 countries, and has a staff strength of about 228,000 employees.
