Microsoft’s Earnings Blow Past Expectations, Joins $4 Trillion Club After NVIDIA—Can the Rally Continue?

2025/07/30

In a landmark moment for the tech industry, Microsoft has surged past the $4 trillion market capitalization threshold, becoming only the second company after NVIDIA to achieve this feat, following a blockbuster earnings report that has reignited investor enthusiasm. The milestone not only underscores Microsoft’s dominance in the current tech landscape but also sparks intense debate about the sustainability of its stock’s upward trajectory.

A Stellar Quarter: Revenue and Profits Soar

On July 30, Microsoft released its fiscal fourth-quarter results for the period ending June 30, 2025, and the numbers were nothing short of spectacular. Quarterly revenue hit $76.44 billion, comfortably surpassing analysts’ expectations of $73.8 billion and marking an 18% year-over-year increase. Net income jumped 24% to $27.23 billion, while diluted earnings per share (EPS) rose 24% to $3.

65, outpacing the projected $3.37. This performance sent shockwaves through financial markets, reinforcing confidence in Microsoft’s ability to deliver consistent growth.

Cloud Dominance: Azure Leads the Charge

The star of the quarter was Microsoft’s Intelligent Cloud segment, which has emerged as the company’s primary growth driver. Revenue for the division reached $29.88 billion, up 26% year-over-year and exceeding the expected $29.

1 billion. Notably, Microsoft disclosed for the first time that Azure and other cloud services generated over $75 billion in revenue for the full fiscal year, a 34% increase from the previous year. In Q4 alone, Azure revenue surged 39%, far outpacing the 34% growth analysts had predicted.

In an era defined by digital transformation and AI proliferation, demand for cloud infrastructure has skyrocketed, and Azure has capitalized by offering robust, AI-integrated solutions.

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