Microsoft crosses $1 trillion market cap after impressive Q3 earnings

After beating analyst expectations with its FY19 Q3 earnings report today, Microsoft's stock surged to over $130 per share in after-hours trading, raising its market cap past $1 trillion. This would make Microsoft the third company to cross that threshold, following Amazon and Apple (via CNBC).

The landmark moment follows a long string of successful quarters for Microsoft, as its cloud business continues to grow substantially. Gaming revenues and Surface have also been highlights for Microsoft in recent quarters, further propelling its rising revenues.

For its third quarter of the fiscal year 2019, Microsoft brought in total revenues of $30.6 billion, a 14 percent increase over the same period last year. Net income was up 19 percent, surging to $8.8 billion.

Broken down by segment, Microsoft reported revenues of $10.2 billion in Productivity and Business Processes, $9.7 billion in Intelligent Cloud, and $10.7 billion in More Personal Computing (the section accounting for Windows, gaming, and Surface revenue).

If Microsoft's after-hours stock price holds above $130, it will open trading on Thursday as a trillion-dollar company.

Dan Thorp-Lancaster

Dan Thorp-Lancaster is the former Editor-in-Chief of Windows Central. He began working with Windows Central, Android Central, and iMore as a news writer in 2014 and is obsessed with tech of all sorts. You can follow Dan on Twitter @DthorpL and Instagram @heyitsdtl

  • The 'Post PC" era has been bery bery good to me.
  • Yeah, they still can't afford a phone.
  • Yes, they can. They are called iPhones or Galaxies. 😜
  • The phone was all Steve Balmer trying to go toe to toe with Steve Jobs.
  • Neither a fridge.
  • The Empire always strikes back.
  • I though they already hit that mark, months ago, but then slid back under.
  • They had the world's highest market cap a few months ago, then slid back a bit.
  • Let the Windows Phone complaining begin! Oh I see it did already. Nevermind.
  • The fact that their software and subscription sales are up 12% on Xbox is all the more reason they shyt the bed bad with the Xbox One S all digital price being $250 when you can easily buy one at the price or lower with an actual 4K Blu-ray player with HDR. They should have released it at an MSRP of $149.99 and let the Game Pass and Xbox live revenue continue to poor in. Why try to break even with a console that competes with a similar model at often lower prices but has more features.
  • You are comparing MSRP with street price. They are two different things. The street price of the digital edition is still unknown.
  • Bleached is exactly right on this one. While I would like to see a lower price final street price on the discless Xbox, Microsoft does need to be careful. Customers who buy the low-cost system are also likely to spend less on future services. Price sensitive customers are the least valuable customers over time. Of course, if there are enough of them, and provided MS is making a profit on each sale, then volume can make up for lower margins per sale. Also, there's a hard-to-forecast benefit to having more Xbox systems out there, because that increases the market for sales, which makes the Xbox more attractive to developers for exclusive deals. I'm not sure MS plans to do exclusives that way (i.e., if they're just going to create their own exclusives and not rely on third parties, then it doesn't matter), but if they do, higher volume sales could lower the cost of paying to lock in exclusives.
  • Micro$oft the most hated tech company....
  • I haven't seen that one in a while
  • How good would the result have been of they also went after the consumer market. Can't walk and chew gum at the same time. Sad.
  • Yeah, then they'd be a THIRTEEN TRILLION DOLLAR COMPANY. Sad.