Microsoft Hits $4 Trillion Market Cap on Cloud and AI Strength

Microsoft Corp. surged past a $4 trillion market valuation following stronger-than-expected Q4 earnings, driven by its cloud computing and artificial intelligence divisions. Shares climbed 5% in early trading, cementing its position as the second U.S. company to reach the milestone after Nvidia.

The tech giant reported adjusted earnings of $3.65 per share on revenue of $76.4 billion, surpassing analyst estimates. For the first time, Microsoft disclosed Azure cloud revenue separately—revealing a 34% annual growth to $75 billion. Its Intelligent Cloud segment generated $29.8 billion, outperforming projections.

Wall Street anticipates Microsoft's aggressive AI investments will fuel significant growth through fiscal 2026. The earnings beat contributed to a broader tech rally, with Meta shares also advancing notably.