Overview
- Shares trade near $401 after a roughly $1 trillion market-value drop, with a forward P/E around 22x at a decade-low valuation versus the S&P 500.
- Fiscal Q2 revenue reached $81.3 billion, up 17% year over year, with non-GAAP EPS of $4.14 beating estimates and Microsoft Cloud topping $50 billion in quarterly revenue.
- Azure grew 39% year over year, with management saying growth was capped by infrastructure limits that Microsoft aims to address through capital spending that could top about $100 billion this fiscal period.
- Microsoft reported a recent step-up in AI infrastructure investment, including $37.5 billion of capital expenditures, while guiding Q3 revenue to $80.65–$81.75 billion.
- Analysts highlight upside from Microsoft’s OpenAI exposure—estimated by some at over $200 billion in value—alongside risks, and one sets a DCF fair value of $465 with a stated buy range of $380 to $410; Microsoft 365 Copilot has about 15 million paid seats.