Microsoft and Nvidia Reach $4 Trillion Market Cap
On July 31, 2023, Microsoft (NASDAQ: MSFT) surpassed a $4 trillion market cap, shortly after Nvidia (NASDAQ: NVDA) became the first to reach this milestone on July 9. As of market close on July 31, Microsoft had a year-to-date increase of 26.9%, significantly outperforming the S&P 500, which saw a 7.8% gain.
Strong Financial Performance
Microsoft reported a 15% growth in total revenue for fiscal year 2025, exceeding its guidance of 13.8%. The company concluded the fiscal year with an impressive 45.6% operating margin and a 36.1% profit margin, indicating its ability to convert revenue into earnings effectively.
Investments and Future Outlook
The company is directing funds towards capital expenditures, projecting $30 billion for the current quarter. In fiscal 2025, Microsoft increased its cash reserves by $11.9 billion. With its robust balance sheet, Microsoft continues to innovate in AI while expanding its core business, positioning itself favorably for future growth.
