Investment manager Vulcan Value Partners reported positive absolute results in its Q3 2026 investor letter for most strategies, with the Large Cap Composite (Net) returning 7.4% and the Small Cap Composite (Net) down 1.2%. The letter highlighted Microsoft (MSFT) as a top contributor, citing a close of $521.08 on October 22, 2026, a market capitalization of $3.87 trillion, a 0.95% one-month return, and a 0.48% decline over 52 weeks. According to the letter, Azure growth accelerated to 43%, its highest in four years, with annual Azure revenue above $100 billion, while commercial remaining performance obligations rose 84% (25% excluding OpenAI contracts). Paid Copilot subscribers exceeded 30 million, and free cash flow was $20 billion in fiscal Q4 and $67 billion in fiscal 2026, though it declined as Microsoft invests in additional compute capacity. The fund said Microsoft's value has grown meaningfully, its competitive advantages remain intact, and its shares still trade at a significant discount.
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Related tickers and likely impact
MSFT
▲ Likely positiveMicrosoft
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $3.9T |
| Close on 10/22/2026 | 521.08 |
| Change that session | -2.23% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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