Microsoft Surpasses $4 Trillion After Strong AI Earnings

Microsoft became the second company after Nvidia to surpass a $4 trillion market capitalization, propelled by strong demand for cloud and AI services. In its fiscal fourth quarter, Microsoft posted $76.4 billion in revenue (up 18% year-over-year) and $27.2 billion in net income, with Azure cloud revenue exceeding $75 billion for the year and growing 34% annually. Growth was driven by rapid adoption of AI-powered offerings like Microsoft 365 Copilot and strategic partnerships, including with OpenAI. Microsoft has announced plans for record $30 billion capital expenditures next quarter to expand its global network of more than 400 data centers. The company's results and positive AI outlook boosted its shares and the wider tech market. Meta also reported strong earnings and increased AI investments, highlighting continued sector momentum.