Microsoft (NASDAQ:MSFT) shares rose just 1.6% over the past year, while net income grew 32.01% in the latest quarter, a gap the author argues most investors are misreading. The author sees Microsoft earning revenue at every layer of corporate AI use, from Azure capacity to Foundry and Copilot. In the quarter ended Sept 30, 2026, revenue reached $92.28B, up 18.8%, Microsoft Cloud brought in $63.9B, up 30%, and Azure grew 48%. Commercial remaining performance obligations reached $677B, up 73%, and non-GAAP EPS came in at $4.89 against a $4.72 estimate. The article also flags spending risk, with cash capex of $39.37B last quarter, up 102.99%, and fiscal 2026 free cash flow down 6.46% to $66.99B.
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MSFT
▲ Likely positiveMicrosoft
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $3.9T |
| Close on 11/03/2026 | 520.77 |
| Change that session | +2.69% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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