TMTPOST -- Microsoft Corporation   on   Thursday once entered into the $4 trillion club after   the software giant posted blockbuster   earnings for the past quarter.

Credit：Microsoft

Microsoft   shares   rose as much   as 8.2%   in   the morning trade, driving its market capitalization   to past   $4   trillion.   It thus became   the second listed company   in history to pass   the $4 trillion   market value   mark   following Nvidia   Corporation, which previously topped   the mark   on July 9.   Microsoft   stock   later Thursday   pared around   half of gains   and settled   nearly 4%   higher   with the market cap   of about $3.97 trillion. It   was still   a   company that   is most likely to become the second firm   ever to cross   a $4   trillion market value threshold as of close.   

The market cap   milestone   highlighted   investors ’   enthusiasm   after   Microsoft ’ s earnings report,   fueled by   strong   cloud and artificial intelligence ( AI )   strength.

Microsoft posted strong results across the board for fourth   fiscal quarter ended June   30, 2025. Revenue jumped 18% year-over-year ( YoY ) to $76.44   billion, shattering   Wall Street estimated $73.89   billion. That suggested sales accelerated from a 13% YoY increase three months ago.   Diluted earnings per share ( EPS ) for the June   quarter climbed 24% to $3.65, topping analysts ’   projection   of #3.37, compared with the growth rate of 17.7% for the previous quarter.

Microsoft cloud business, which is currently most evidently benefiting from generative AI applications, also beat analysts ’   estimates. The commercial cloud brought $46.7   billion from April   to June, representing a YoY surge of 27%. Analysts anticipated the segment recorded $45.96   billion of revenue. Microsoft Intelligent Cloud, which also includes the core cloud platform Azure, saw revenue gained 21% YoY to $29.9   billion, ahead of Wall Street estimate of $29.1 billion.

Revenue from Azure and other cloud services recorded a YoY increase of 39%, whereas analysts expected the unit would deliver an increase   of 34.2%,   up from 33% three months   ago. Microsoft CEO Satya Nadella   disclosed   Azure   surpassed $75 billion   in   revenue   this fiscal   year, up 34%   YoY. That   was   the first time for   Microsoft   to disclose Azure revenue.

Nadella attributed cloud and AI   to the   robust   financial results. "Cloud and AI is the driving force of business transformation across every industry and sector,"   Nadella said   in a statement,   adding that   Azure revenue was driven by "growth across   all workloads."   The   chief executive   said his company is"   innovating across the tech stack to help customers adapt and grow in this new era, and this year",   and told analysts "we are going through a generational tech shift with AI."

  Microsoft continued heavy investment in AI infrastructure. Captial expenditure, or Capex, including finance leases, hit   a new quarterly record   at $24.2   billion for the fourth   fiscal quarter   with a 27%   YoY increase. That represented a   more than 13.1% rise from the preceding quarter, ahead   of analysts ’   expectation   of $23.17 billion. The   Capex   eased   concerns over Microsoft ’ s scaling   back   AI spending   as it   resumed   growth after the company reported   a 5.3%   decrease, its   first quarter-over-quarter   ( QoQ )   decline in Capex in more than two years.

  Microsoft executives have indicated that the company   will match increases in demand for AI services by building up its data centers. Nadella   on an earnings   call said Microsoft now has more than 400 data centers across 70 regions worldwide.   The   company anticipated more than $30 billion in Capex   for the   current quarter, or the   first quarter   of   this fiscal   year,   said   Chief Financial Officer   ( CFO )   Amy Hood.   That   forecast   marks a   new record high   for Capex   with   an   QoQ rise of more than 24%.