Microsoft Hits $4 Trillion Market Cap on Strong Earnings

Microsoft has become the second company in history to surpass a $4 trillion market capitalization, following a robust quarterly earnings report that exceeded Wall Street expectations – according to Bloomberg.

The tech giant’s stock surged as much as 8.2% during early trading on Thursday in New York, pushing its market value to approximately $4.1 trillion.

Nvidia was the first to cross this landmark earlier in July.

“Microsoft is finally getting the recognition it deserves as the backbone of modern business operations,” said Kim Forrest, Chief Investment Officer at Bokeh Capital Partners LLC. “From Word to Outlook to Excel, it powers daily business functions. These results highlight Microsoft’s even stronger position in a market where it has few, if any, substitutes — just like Nvidia.”

The results underscore Microsoft’s stand in the ongoing artificial intelligence boom that has been fueling the rise of megacap tech stocks and driving momentum in broader markets.

The company reported solid growth in its cloud segment, with Azure — its flagship cloud computing platform — posting a 39% year-over-year increase in sales, beating analysts’ projections of 34%.

Also Read: Microsoft Surpasses Apple in Market Valuation on AI Investment

Speaking to analysts, CFO Amy Hood announced Microsoft expects capital expenditures to exceed $30 billion in its fiscal first quarter, with overall revenue growth projected in the double digits for the full year.

Azure is forecasted to grow by 37% in Q1, again outpacing market expectations.

Investor sentiment has remained positive toward aggressive AI-related spending.

Meta Platforms Inc. also raised its 2025 capital expenditure forecast and hinted at strong investments in 2026, pushing its stock up by as much as 13%. That rally added over $223 billion to Meta’s market cap, potentially marking the company’s biggest single-day value gain ever.

Microsoft and Meta now rank as the second- and third-best performers among the so-called “Magnificent Seven” tech giants this year.

Since hitting a low on April 8 — triggered by market jitters over former President Donald Trump’s tariff threats — both stocks have rallied more than 50% and are now trading at all-time highs.

The record valuation Microsoft, comes almost a year after it underperformed its tech peers in 2024 and early 2025.

At one point, it was the only member of the Magnificent Seven in the red. Concerns had been mounting over Microsoft’s AI strategy and the pace of Azure’s growth.

Still, Wall Street remains overwhelmingly bullish. Of the 72 analysts tracking the company, 68 rate the stock a “buy,” while only one has issued a “sell” recommendation, according to Bloomberg data.