Microsoft became the second company in the world to surpass a market value of $4 trillion Thursday after posting strong quarterly earnings.
The tech giant’s stock jumped 7 percent when markets opened Thursday morning, boosting the company’s market capitalization above $4 trillion for the first time.
It joins Nvidia, which became the first company to cross the historic threshold earlier this month.
Microsoft’s stock is booming after reporting $76.4 billion in revenue for the three-month period between April and June, up 18 percent from the same time last year, and $27.2 billion in net income, up 24 percent year-over-year.
Most notably, the company’s cloud computing platform Azure surpassed $75 billion in revenue for the fiscal year, up 39 percent year-over-year in the last quarter.
Amy Hood, Microsoft’s chief financial officer, also announced during a Wednesday evening earning call that the company plans to spend $30 billion on capital spending in the next quarter.
“Cloud and AI is the driving force of business transformation across every industry and sector,” Satya Nadella, chair and CEO of Microsoft, said in a statement.
Meta also posted strong quarterly results Wednesday, resulting in a 12 percent jump in its stock price Thursday morning.
The social media giant behind Instagram and Facebook reported a 36 percent year-over-year increase in net income and a 22 percent jump in revenue.
Susan Li, Meta’s chief financial officer, noted in her outlook that the company expects its total capital spending for 2025 to fall between $66 billion and $72 billion, followed by another year of “significant” spending in 2026.
“While the infrastructure planning process remains highly dynamic, we currently expect another year of similarly significant capital expenditures dollar growth in 2026 as we continue aggressively pursuing opportunities to bring additional capacity online to meet the needs of our artificial intelligence efforts and business operations,” Li wrote.
