Microsoft says its in-house MAI models now match OpenAI's output on common work at a fraction of the cost, with MAI Voice 2 Flash delivering an 89% reduction in GPU costs in Dynamics 365. Fiscal 2026 revenue reached $331.84 billion, up 17.79%, Azure passed $100 billion for the full year, and commercial remaining performance obligations hit $678 billion, up 84%. Fiscal 2026 capex rose 79.62% to $115.95 billion, and excluding OpenAI, commercial RPO grew only 25%, which the article identifies as the key risks. Operating cash flow rose 34.35% to $182.94 billion, while fourth-quarter free cash flow fell 23.19% to $19.64 billion as management expects capex of roughly $175 billion. The article compares Microsoft's 30 times earnings with Alphabet's 15 and Amazon's 36, and argues the gap between what Microsoft charges and what it spends is the metric to watch.
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MSFT
▲ Likely positiveMicrosoft
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $4.0T |
| Close on 10/19/2026 | 533.52 |
| Change that session | +0.84% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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