Microsoft's stock surged in after-hours trading following a strong earnings report, positioning the company to potentially reach a $4 trillion market capitalisation. The positive results were driven by growth in its cloud and AI sectors. Microsoft reported adjusted earnings per share of $3.65 on revenue of $76.4 billion, exceeding analysts' expectations of $3.37 EPS and $73.89 billion in revenue.
The Intelligent Cloud segment, which includes Azure, generated $29.8 billion in revenue. Azure's revenue surpassed $75 billion for the year, marking a 34% increase. CEO Satya Nadella highlighted that cloud and AI are driving business transformation across industries. CFO Amy Hood noted the company closed the year with a strong quarter.
If Microsoft achieves the $4 trillion valuation, it will join an exclusive group of companies. The company's performance reflects the increasing demand for cloud services and AI solutions across various sectors.
