Microsoft crossed the trillion-dollar mark on Thursday US time as its shares rose more than 5% in the early part of the trading session. The company ended the day valued at US$991 billion.
Microsoft's third-quarter results, announced on Wednesday, showed a 14% rise in revenue year-on-year to US$30.6 billion, with profits coming in at US$8.8 billion, a rise of 19% year-on-year.
Despite a generally lacklustre PC market, Microsoft's best-known product, Windows, increased its OEM revenue by 9% as its division known as More Personal Computing increased its revenue by US$10.7 billion, a rise of 8%.
“Leading organisations of every size in every industry trust the Microsoft cloud," chief executive Satya Nadella said. "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 is competing with Amazon to win a massive US$10 billion contract with the Department of Defence, and recently announced the setting up of two new Azure regions devoted to the hosting of government data at the defence department's Impact Level 6, the highest classification for data, to boost its chances in the race.
“Demand for our cloud offerings drove commercial cloud revenue to US$9.6 billion this quarter, up 41% year-over-year,” said executive vice-president and chief financial officer Amy Hood.
“We continue to drive growth in revenue and operating income with consistent execution from our sales teams and partners and targeted strategic investments.”