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Microsoft hits $1 trillion in market cap after strong earnings

Heidi Chung

Microsoft (MSFT) has officially joined the $1 trillion club.

The tech giant hit the big milestone for the first time ever Thursday morning, after reporting better-than-expected fiscal third-quarter financial results after the bell Wednesday.

Microsoft shares have set record highs in multiple consecutive trading sessions, and soared by an additional 4% in midmorning dealings on Thursday.

The stock has been on a tear, rallying over 30% from its December lows. Microsoft’s continued dominance in cloud computing and services bolstered its results, which sent its shares soaring.

The major milestones of Microsoft's road to becoming a company with at least $1 trillion in market capitalization.

Microsoft earned $1.14 per share, exceeding analyst expectations of $1.00 earnings per share. During the quarter, the tech giant reported revenue of $30.60 billion, which was better than consensus estimates of $29.86 billion in revenue.

Microsoft’s cloud-computing business was in focus, as analysts expected to see strong growth in the segment. The cloud business brought in $9.65 billion in revenue, which was a 41% increase from last year. Analysts were predicting cloud revenue of $9.30 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,” CEO Satya Nadella said in a statement.

Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.

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