Microsoft Surpasses $4 Trillion in Market Value

Microsoft has officially joined the elite $4 trillion market cap club, following a strong fourth-quarter earnings report that exceeded analyst expectations and sent shares soaring over 9% in after-hours trading. With this milestone, Microsoft joins Nvidia as the only other company to cross the $4 trillion threshold.

The tech giant reported Q4 revenue of $76.4 billion and earnings of $3.65 per share, outperforming Bloomberg analysts’ estimates of $73.89 billion in revenue and $3.37 earnings per share. The jump in share price was fueled by continued strong performance in Microsoft’s cloud and AI segments, with CEO Satya Nadella stating that these technologies are the primary drivers of business transformation across industries.

“Cloud and AI are fueling innovation across every sector,” said Nadella. “This year, Azure surpassed $75 billion in revenue, up 34%, driven by growth across all workloads.”

In a notable shift, Microsoft for the first time broke out Azure's revenue figures, offering rare transparency. The company also announced plans to invest $30 billion in capital expenditures for the upcoming quarter, a figure higher than expected and part of its strategy to rapidly expand data center capacity. CFO Amy Hood emphasized that demand still exceeds supply, highlighting the urgent need for infrastructure to support AI growth.

As tech giants escalate their investments—Google recently announced $85 billion in capex—Microsoft’s aggressive spending underscores the race to dominate the AI and cloud computing future. Internally, Microsoft’s leadership is pushing for “intensity” as the company navigates its record-breaking growth, though employee reactions to recent executive memos have reportedly been mixed, ranging from skepticism to speculation.

With a historic quarter behind it and ambitious expansion plans ahead, Microsoft is positioning itself as a dominant force in the evolving AI-powered digital economy.