Microsoft’s value topped $1 trillion for the first time ever and sits atop the tech world again.
It lost its crown in recent years to Apple and Amazon, which both reached the $1 trillion mark last year.
The three tech behemoths have been taking turns at the top spot throughout 2019 but the recent announcement of Microsoft’s strong financial results has seen its stock prise rise dramatically.
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Microsoft’s value topped $1 trillion for the first time ever and sits atop the tech world again. It lost its crown in recent years to Apple and Amazon, which both reached the $1 trillion mark last year (file photo)
Executives at the Redmond, Washington-based company crediting continued cloud uptake in the commercial sector and an increase in people subscribing to its Office 365 products.
In the three months leading to the end of March, the computing giant saw a boost in revenue, operating income and net profit compared with the same period last year.
‘Leading organisations of every size in every industry trust the Microsoft cloud,’ said Microsoft chief executive Satya Nadella.
‘We are accelerating our innovation across the cloud and edge so our customers can build the digital capability increasingly required to compete and grow.’
Microsoft shares rose 4.4 per cent to $130.54 in late trading after the forecast issued on a conference call with investors, pushing the company ahead of Apple Inc’s $980 billion market capitalisation.
Microsoft’s stock has gained about 23 per cent gain so far this year, after hitting a record high of $125.85 during regular trading hours – when its total market capitalisation value exceeded $1 trillion for about half an hour.
Under Chief Executive Satya Nadella, the company has spent the past five years shifting from reliance on its once-dominant Windows operating system to selling cloud-based services.
Azure, Microsoft’s flagship cloud product, competes with market leader Amazon Web Services (AWS) to provide computing power to businesses.
In the three months leading to the end of March, the computing giant saw a boost in revenue, operating income and net profit compared with the same period last year. ‘Leading organisations of every size in every industry trust the Microsoft cloud,’ said Microsoft chief executive Satya Nadella
The company’s key online software suite Office and cloud led much of the positive results, with revenue up by 12% for the commercial side, driven by a 30% rise in revenue from Office 365 Commercial.
Its consumer Office products and cloud services painted a similar picture, increasing revenue by 8 per cent, and counting 34.2 million subscribers to its Office 365 Consumer service.
Revenue from its Surface devices also increased 21 per cent, while gaming grew 5 per cent, with Xbox software and services revenue growing of 12 per cent.
‘Demand for our cloud offerings drove commercial cloud revenue to 9.6 billion dollar this quarter, up 41 per cent 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.’
Microsoft’s earnings per share of $1.14 beat expectations of $1, according to IBES data from Refinitiv.
Windows licensing revenue from computer makers grew 9 per cent year over year, beating expectations after a 5 per cent decline in the previous quarter. Spencer said a shortage of Intel Corp processor chips for PCs that many analysts expected to last into this summer had been resolved earlier than expected, allowing PC makers to ship more machines.