Microsoft exceeds $4 trillion in market capitalization, the second company to surpass this symbolic threshold.
Microsoft Reaches $4 Trillion Market Capitalization
Microsoft surpassed a market capitalization of $4 trillion on Thursday, July 31st, driven by quarterly results that significantly exceeded expectations. This makes the American company the second to cross this symbolic threshold, following chip giant Nvidia.
Microsoft’s stock rose by 4.62% to $536.93 on the New York Stock Exchange around 4 PM on Thursday. Since the beginning of the year, its stock price has increased by nearly 30%. The Redmond, Washington-based group far exceeded expectations in the fourth quarter of its fiscal year, marked by further growth in cloud computing and artificial intelligence (AI).
Net profit reached $27.2 billion, up 24% year-over-year, while revenue climbed to $76.4 billion, an 18% increase year-over-year, according to results released Wednesday.
9,000 Job Cuts
Quarter after quarter, the company co-founded by Bill Gates delivers consistently strong financial results, boosted by the rise of generative AI since late 2022. Alongside Meta (Facebook) – whose quarterly results also exceeded analysts’ consensus – Microsoft “shattered expectations, triggering a new wave of enthusiasm for AI that is helping to boost the stock market,” noted Patrick O’Hare, an analyst at Briefing.com.
Despite these strong results, Microsoft announced in early July that it would lay off several thousand more people, following an initial wave in May, particularly by reducing certain hierarchical levels. “The total impact represents less than 4% of the workforce,” according to a spokesperson, amounting to approximately 9,000 employees out of a total workforce of 228,000, according to the latest annual report.
Microsoft is the second group to enter the exclusive club of companies with a market capitalization of $4 trillion, exceeding the gross domestic product (GDP) of France, the United Kingdom, or India. Earlier in July, the American semiconductor specialist Nvidia became the first group to surpass this threshold, also driven by investor enthusiasm for AI-related stocks.
Microsoft’s headquarters in Redmond, Washington, on Friday, April 4, 2025.
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