Overview
- Shares are down about 28% from the July 2024 high to roughly $401, putting the stock near 22x forward earnings at a rare discount to the S&P 500.
- Fiscal Q2 2026 revenue rose 17% to $81.3 billion, beating estimates, as Microsoft Cloud topped $50 billion and Azure grew roughly 39%.
- Capital expenditures reached approximately $37.5 billion in the quarter, with management outlining roughly $100 billion or more to expand AI infrastructure.
- Microsoft’s OpenAI exposure remains significant, including a $13 billion commitment and analyst estimates that its stake could exceed $200 billion after an $840 billion OpenAI valuation.
- Copilot has about 15 million paid seats, and Microsoft 365 E7 at $99 per user per month is slated for May 1 to encourage broader adoption.