Market capitalization of Microsoft has finally reached the $1 trillion mark, becoming only the third company in the world to touch this milestone.
Yesterday, the tech giant announced its fiscal third-quarter results, reporting a revenue of $30.6 billion, up 14% year over year. Company’s operating income increased by 25% from the corresponding period of last year and reached $10.3 billion. Whereas, the net income increased by 19% to $8.8 billion.
“Leading organizations of every size in every industry trust the Microsoft cloud. We are accelerating our innovation across the cloud and edge so our customers can build the digital capability increasingly required to compete and grow,” said Satya Nadella, CEO of Microsoft.
The company has beaten the estimations of Wall Street for quarterly profit and revenue, majorly driven by accelerated growth in the commercial cloud business and Windows revenue. Microsoft reported that its server products and cloud services revenue increased 27%, which was driven by Azure revenue growth of 73%.
In after-hours trading yesterday, the stock of the company increased by over 4% to help the company’s market capitalization cross the one trillion mark. However, the shares declined to bring the market cap below the one trillion mark.
“Demand for our cloud offerings drove commercial cloud revenue to $9.6 billion this quarter, up 41% year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.
“We continue to drive growth in revenue and operating income with consistent execution from our sales teams and partners and targeted strategic investments.”
The company has returned $7.4 billion to shareholders in the form of share repurchased and dividends in the Q3 2019.
Microsoft will share its forward-looking guidance related to the quarterly earnings announcement on its earnings conference call and webcast.