Microsoft shares trade at $526.50, within 4% of their record high and valued at $3.95 trillion, ahead of next week’s first-quarter report, backed by a $678 billion commercial backlog and 43% Azure growth. Gross margin fell to 67% in the fourth quarter as AI server costs rose, while capital expenditures reached $41 billion and are projected to top $50 billion per quarter in 2027. The More Personal Computing segment dropped 4%, with Xbox revenue down 10% and Windows OEM revenue down 5%, and management guides to sharp declines in Windows OEM and devices in 2027. The article argues that with the stock at 96% of its 52-week peak and valuation models showing only modest upside, the current price leaves little margin of safety.
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MSFTearningsvaluationartificial intelligence
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Related tickers and likely impact
MSFT
▲ Likely positiveMicrosoft
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $3.9T |
| Close on 10/23/2026 | 524.51 |
| Change that session | +0.66% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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