This is The Latest Company to Hit a $1 Trillion Market Cap

Microsoft is the newest company in the world to hit a $1 trillion market cap after the company reported its earnings report.

The tech giant reported fiscal third-quarter results after the close of trading on Wednesday that beat expectations.

For the quarter, Microsoft reported earnings per share of $1.14 while analysts had been waiting for $1.00 according to Refinitiv. Revenue was $30.6 billion while analysts had expected $29.84 billion.

Sales for the company had seen a growth of 14% for the quarter while net income saw a jump of 19% to hit $8.8
billion.

Microsoft Azure revenue also grew 73% while the company’s cloud business saw a growth of 41%.

Looking ahead, the company has forecast revenue of $32.2 billion to $32.9 billion for the fourth quarter. Analysts were waiting for $32.6 billion.

“We continue to believe the shift to the cloud will be additive to Microsoft given a broader portfolio of products with deeper functionality as well as Microsoft’s ability to enter new categories where it did not compete previously,” remarked Stifel analyst Brad Reback.

“The tide has turned significantly for MSFT on the ‘game changing’ $10 billion JEDI Beltway cloud deal for the Pentagon with our work in the field indicating this bake-off is now a toss-up and even odds between Bezos and Nadella vs. the slam dunk win for AWS that it appeared to be roughly a year ago,” wrote Wedbush analyst Daniel Ives. It “could represent a key positive catalyst for MSFT looking ahead when this winner likely gets announced in the summer time-frame,” he added.

Both Stifel and Wedbush have a “buy” rating on the stock.

Microsoft CEO Satya Nadella commented on the earnings call, “It was another strong quarter with double-digit top-line and bottom-line growth, the result of picking the right secular trends, accelerating innovation; and most importantly, relentlessly focusing on our customers’ success.”

He added, “Our trusted, extensible cloud platform spanning application infrastructure, data & AI, productivity and collaboration, as well as business applications enables every organization to create their own intelligent systems and experiences to compete and grow.”

Disclaimer: We have no position in Microsoft Corporation (NASDAQ: MSFT) and have not been compensated for this article.