Microsoft Shares Surge 8% After $76B Q4 Beat, Market Cap Tops $4 Trillion

Microsoft reported a strong fourth quarter for fiscal 2025, with revenue of $76.44 billion and adjusted earnings per share of $3.65, both surpassing analyst expectations. The company’s Azure cloud business grew 39% year-on-year, exceeding estimates and driving overall growth in the Intelligent Cloud segment. Microsoft’s market capitalization crossed $4 trillion, joining Nvidia in this exclusive club. Guidance for the next quarter also exceeded expectations, with forecasted revenue between $74.7 billion and $75.8 billion and Azure expected to grow 37% year-on-year. CEO Satya Nadella highlighted cloud and AI as key growth drivers, with Microsoft 365 Copilot adoption boosting commercial cloud revenue. Despite laying off over 6,000 employees and recognizing losses related to OpenAI investments, Microsoft’s stock surged over 6% in after-hours trading and is up 23% year-to-date.