Added to YB: 2026-02-26
Pitch date: 2026-02-23
MSFT [neutral]
Microsoft Corporation
+4.28%
current return
Author Info
Company Info
Microsoft Corporation develops and supports software, services, devices, and solutions worldwide. The Productivity and Business Processes segment offers Microsoft 365 commercial, enterprise mobility + security, windows commercial, power BI, exchange, sharepoint, Microsoft teams, security and compliance, and copilot; Microsoft 365 commercial products, such as Windows commercial on-premises and office licensed services; Microsoft 365 consumer products and cloud services, including Microsoft 365 consumer subscriptions, office licensed on-premises, and other consumer services; LinkedIn; dynamics products and cloud services, such as dynamics 365, cloud-based applications, and on-premises ERP and CRM applications.
Market Cap
$2.9T
Pitch Price
$384.14
Price Target
N/A
Dividend
0.94%
EV/EBITDA
15.53
P/E
24.34
EV/Sales
9.57
Sector
Software
Category
growth
Microsoft: Investing to avoid falling behind
MSFT (earnings): Q2 rev $81.3B (+17%), op profit $38.3B (+21%), adj EPS $4.14 (+24% ex-OpenAI gains). Azure +39%, M365 strong adoption. Microsoft Cloud $51.5B (+26%) but capex surged to $37.5B (mostly GPUs), FCF only $5.9B. RPO $625B (+110%, 45% OpenAI). Q3 guide: cloud gross margin to compress to 65% from 67%. Trade-off: accept multi-year heavy investment & lower margins to secure AI oligopoly position. Core biz remains solid.
Read full article (12 min)