Microsoft follows Nvidia toward $4 trillion club as AI and Cloud drive blowout quarter
Fueled by surging Azure growth and renewed investor confidence in its AI strategy, Microsoft is on the verge of joining Nvidia in the exclusive $4 trillion market cap club.
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Microsoft Corp. is poised to become the second company in history to hit a $4 trillion market capitalization, following Nvidia Corp., after delivering quarterly results that exceeded Wall Street’s expectations and sent its stock soaring in after-hours trading Wednesday.
Shares of the tech giant jumped as much as 9% to over $560 in late New York trading. If those gains hold when markets open Thursday, Microsoft will officially cross the $4 trillion mark, joining Nvidia, which became the first company to reach the milestone earlier this month.
The results confirmed Microsoft’s growing dominance in the artificial intelligence boom that has fueled the rise of megacap tech stocks over the past few years, as per reports.
For the three months ending June 30, the company reported revenue of $76.4 billion, an 18 percent increase from the same period last year. Net income jumped 24 percent to $27.2 billion, while operating income climbed to $34.3 billion. Earnings per share rose to $3.65, up from $2.95 a year ago.
For the full fiscal year, Microsoft reported revenue of $281.7 billion, up 15 percent, and net income of $101.8 billion, marking a 16 percent increase—making it one of the few global companies to consistently report annual profits in the triple digits.
The company’s Intelligent Cloud division led the way, with revenue rising 26 percent to $29.9 billion. Azure and other cloud services surged 39 percent, highlighting Microsoft's expanding role in building and powering AI infrastructure. Chief Financial Officer Amy Hood noted that Microsoft Cloud generated $46.7 billion in revenue in the quarter alone—a 27 percent year-on-year increase.
Other business segments also posted solid gains. The Productivity and Business Processes unit—which includes Microsoft 365 and LinkedIn—recorded $33.1 billion in revenue, up 16 percent. Microsoft 365 Commercial revenue rose 18 percent, while LinkedIn’s steady momentum continued with a 9 percent revenue gain.
The More Personal Computing division, which houses Windows, Xbox, and Bing, saw revenue increase 9 percent to $13.5 billion. Xbox content and services grew 13 percent, and search and advertising revenue jumped 21 percent, excluding traffic acquisition costs.
Despite a wave of job cuts tied to its AI restructuring, the company returned $9.4 billion to shareholders through dividends and stock buybacks during the quarter.
