Microsoft Reaches $4 Trillion Market Cap as MSFT Stock Surges to New Highs
Following hours, Microsoft's record-breaking Azure performance boosted the company's stock, bolstering confidence in its cloud-first growth.
Quick overview
- Microsoft's Azure revenue surpassed $75 billion annually for the first time, leading to a 9% surge in shares after hours.
- The company's fiscal Q2 results showed impressive double-digit growth across all major metrics, with Azure experiencing 39% year-on-year growth.
- Despite Amazon Web Services remaining the dominant player, Microsoft's narrowing gap highlights its increasing appeal to enterprise clients.
- Microsoft's strong performance reinforces investor confidence in its cloud-first strategy and positions it for potential future growth.
Live MSFT Chart
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Following hours, Microsoft’s record-breaking Azure performance boosted the company’s stock, bolstering confidence in its cloud-first growth strategy.
Cloud-Fueled Rally Sends Shares Soaring
Microsoft shares jumped roughly 9% in extended trading after the company revealed Azure revenue surpassed $75 billion annually for the first time, edging out analyst expectations of $74.62 billion. The stock, which closed the day at $513.80, surged dramatically to $560 in after-hours action, notching a $46 gain and hitting fresh all-time highs.
With this surge, Microsoft’s market capitalization is now exceeding the $4 trillion mark, which it reached at $538.13, underscoring investor enthusiasm for its accelerating cloud dominance.
MSFT Monthly Chart – We’ll See A Large Bullish Gap Tomorrow
Q2 Results Cement Cloud Momentum
The company wrapped up fiscal Q2 and the full FY2025 with impressive double-digit growth across all major metrics, from total revenue and earnings to cloud services. Azure saw 39% year-on-year growth, while Microsoft 365 continued to drive consistent commercial and consumer engagement. Even in a backdrop of economic uncertainty, the results demonstrated the resilience and depth of Microsoft’s business model, fueled by its balance sheet strength and targeted innovation strategy.
AWS Still Leads, but Microsoft Is Gaining Ground
While Microsoft continues to gain market share, Amazon Web Services remains the dominant player in cloud computing, generating over $107 billion in revenue in its latest fiscal year. Still, Microsoft’s latest results highlight its narrowing gap with AWS and its growing appeal to enterprise clients across industries.
Big Tech’s Data Center Bet Is Paying Off
With tech giants expected to invest a combined $330 billion in capital expenditures this year—much of it toward data centers—the strong Azure performance reinforces the idea that these investments are now bearing fruit. The market’s response suggests investors are increasingly confident that Microsoft is well-positioned to extract long-term value from its global cloud infrastructure expansion.
Q2 2025 Financial Highlights
- Total Revenue: $76.4 billion, up 18% year-over-year (17% in constant currency)
- Operating Income: $34.3 billion, up 23% (22% in constant currency)
- Net Income: $27.2 billion, up 24% (22% in constant currency)
- Diluted EPS: $3.65, up 24% (22% in constant currency)
Productivity & Business Processes
- Segment Revenue: $33.1 billion, up 16% (14% in constant currency)
- Microsoft 365 Commercial: Revenue up 16% (15% in constant currency). Cloud services revenue up 18% (16% in constant currency)
- Microsoft 365 Consumer: Revenue up 21%, with cloud revenue up 20%
- LinkedIn: Revenue increased 9% (8% in constant currency)
- Dynamics Products & Services: Up 18% (17% in constant currency). Dynamics 365 revenue up 23% (21% in constant currency)
Intelligent Cloud Segment
- Segment Revenue: $29.9 billion, up 26% (25% in constant currency)
- Server & Cloud Services: Revenue rose 27%, Azure and other cloud services revenue surged 39%
More Personal Computing
- Segment Revenue: $13.5 billion, up 9%
- Windows OEM & Devices: Revenue increased 3%
- Xbox Content & Services: Revenue rose 13% (12% in constant currency)
- Search & News Advertising (ex-TAC): Up 21% (20% in constant currency)
Shareholder Returns
- Microsoft returned $9.4 billion to shareholders in Q4 FY2025 via dividends and share buybacks.
Fiscal Year 2025 Full-Year Performance
Total Revenue: $281.7 billion, up 15%
Operating Income: $128.5 billion, up 17% (18% in constant currency)
Net Income: $101.8 billion, up 16% (15% in constant currency)
Diluted EPS: $13.64, up 16%
Leadership Commentary
Chairman and CEO Satya Nadella emphasized the broad impact of cloud adoption, stating that “cloud computing is the engine of business transformation across every industry.” She noted that Azure’s $75 billion in revenue—up 34% year-over-year—was fueled by balanced growth across all workloads. Nadella highlighted how Microsoft continues to innovate across its tech stack to help clients thrive in an era defined by AI and digital acceleration.
Conclusion: Microsoft’s strong Azure performance and cloud-led earnings report have reaffirmed its leadership in tech innovation and digital infrastructure. With the stock hitting new highs and investors reacting positively to its continued momentum, Microsoft enters the second half of 2025 with strong tailwinds and a trajectory that could soon make it the world’s most valuable company.
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