Microsoft on Thursday became the second company - after Nvidia - to go past the $4 trillion mark in market valuation. The milestone came after the Redmond-based tech giant posted quarterly earnings that beat Wall Street’s expectations.
On Wednesday, Microsoft posted annual revenue of $75 billion for the second quarter of the financial year 2026 (April-June), up 34 per cent, for its flagship cloud computing platform 'Azure'. The software giant reported a fiscal fourth-quarter profit of $34.3 billion, or $3.65 per share, surpassing analyst estimates of $3.37 per share.
The company crossed the $1 trillion mark in April 2019 and the $3 trillion mark in 2024, reported Reuters.
The company also announced plans to invest over $30 billion in the current quarter to expand data centres supporting its AI operations.
Shares of Microsoft were up 6.6 per cent at $546.33 in morning trading on Nasdaq.
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Microsoft triggered a market rally after its strong earnings pushed its valuation past the $4 trillion mark, lifting the S&P 500 and Nasdaq to record highs and underscoring investor confidence in the tech sector’s AI-driven momentum.
Meanwhile, social media giant Meta also climbed 12 per cent after posting a 22 per cent increase in its revenue to $47.52 billion.
“We really believe that this is a time for us to really make investments in the future of AI, as I think it will open up both new opportunities for us in addition to strengthen our core business,” Chief Financial Officer Susan Li told investors during a call after the results.
Since April 8 low — triggered by a broader market selloff following President Donald Trump’s sweeping tariff threats — these stocks have rebounded sharply, soaring more than 50 per cent and reaching record-high levels, reflecting a strong recovery in investor sentiment, reported Bloomberg.
