Microsoft officially crossed a $4 trillion market valuation on July 31, 2025, becoming only the second publicly traded company after Nvidia to reach this threshold. Shares leapt more than 4‑5% in early trading on Thursday, following a blockbuster fiscal fourth-quarter earnings report.
Reporting $76.4 billion in revenue, a year‑over‑year gain of 18%, and net income of $27.2 billion (+24%), Microsoft exceeded Wall Street expectations. Its Azure cloud business saw 39% YoY growth and surpassed $75 billion in annual revenue.
Azure’s accelerating momentum, up from 34% to 39%, highlights strong demand for both AI workloads and routine cloud services.
Microsoft announced plans to invest a record $30 billion in capital expenditures in Q1 FY26 to scale AI and infrastructure. Analysts see this as smart positioning to keep pace with Amazon and Google as competition intensifies.
Nvidia set the bar on July 9, 2025, by becoming the first company ever to break the $4 trillion mark. Its explosive rise, from ~$14/share two years ago to current highs, has reshaped the tech industry hierarchy.
Following Microsoft’s and Meta’s strong results, the S&P 500 tech index rose 1.2% and communication services climbed over 3%, both hitting new highs. Meanwhile, the Dow rose 0.20%, the S&P 500 gained 0.71%, and the Nasdaq added 1.16% on the day.
Despite aggressive AI spending, Microsoft has streamlined operations. cutting approximately 9,000 jobs (4% of workforce) in July, after earlier layoffs in May, while holding headcount roughly flat at 228,000. Analysts highlight its effective cost control amid heavy investments
