- Microsoft reported higher-than-expected quarterly earnings, pushing its stock up more than 4%.
- The company’s market capitalization surpassed $4 trillion, joining NVIDIA in an exclusive group.
- Cloud revenue saw a 27% annual increase, with Azure’s Q4 revenue up 39% year-over-year.
- Microsoft is close to a new deal with OpenAI to gain broader access to its technology.
- Market forecasts for Microsoft stock are rising, with some analysts targeting $525 if the OpenAI deal closes.
Microsoft reported stronger-than-expected earnings on Wednesday, causing its stock to climb more than 4% on Thursday. The company’s total market value topped $4 trillion, placing it alongside Nvidia among the most valuable firms.
The company’s results reflected significant growth in its cloud business. Microsoft revealed that its Azure public cloud platform generated over $75 billion in annual revenue for the recent fiscal year. Total cloud revenue rose 27% year-over-year, and Azure revenue increased 39% during the fourth quarter. Elevated personal computer (PC) shipments, partly due to inventory increases ahead of tariffs, also supported earnings.
Microsoft’s price-to-earnings (P/E) ratio increased from 28.83 in the first quarter of 2025 to 39.42 in the third quarter of 2025. The company stated this rise reflects solid market confidence, despite higher valuations.
A potential agreement with OpenAI is also pushing Microsoft stock higher. According to sources, the companies are negotiating terms to allow Microsoft access to the latest OpenAI models and technology. This arrangement would also help OpenAI move away from a for-profit status. The news gave MSFT a solid bump upwards, leading into earnings.
Microsoft’s AI strategy includes adopting an “AI-first” approach and automating certain tasks, which has resulted in job cuts. Investor reaction has been positive, leading to rising price projections from Wall Street. Some analysts are forecasting a target of $525 for the stock if the possible OpenAI partnership is finalized.
Recent strong results from other technology firms, such as Meta and Alphabet, have further boosted investor optimism in the sector. Amazon was also expected to deliver positive earnings following this trend.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- AllUnity Launches EURAU, EU-Regulated Euro Stablecoin Backed 1:1
- Syracuse University Adopts Theta EdgeCloud Hybrid for AI Research
- Tether Reports $4.9B Q2 Profit, Now Major US Treasury Holder
- Tether Posts $4.9B Q2 Profit, Boosts U.S. Treasury Holdings to $127B
- North Korean Hackers Use Cloud, Social Lures in Crypto Heists
