How much did Microsoft's stock rise over the past year?

Microsoft shares rose just 1.6% over the past year, even as net income grew 32.01% in the latest quarter.

What is Microsoft's valuation relative to earnings?

The stock trades at 29 times trailing earnings and 26 times forward earnings, with a 46.78% operating margin.

What did Microsoft guide for next quarter?

Management guided second-quarter Azure growth to 49 to 50% in constant currency and total revenue to $96 to $97.1 billion.

AI Stocks & MarketsAI Business & IndustryYahoo Finance AI3m agoNov 5, 2026, 01:00 JST

Microsoft stock up just 1.6% as net income jumps 32.01%

Send on LINE

3 Key Points

What happened
Microsoft shares rose 1.6% over the past year while net income grew 32.01% in the latest quarter and revenue hit $92.28B, up 18.8%, with Azure up 48%.
Why it matters
The gap between the flat share price and the faster earnings growth is the heart of the investment case, suggesting the stock may not yet reflect the profit gains.

Not sure about something? Ask the AI

Questions and answers are published on this page.

Summaries like this, every morning.

Get these free every morning

Context & Analysis

Microsoft's past year presents a puzzle: the shares gained only 1.6% while net income surged 32.01% in the latest quarter and revenue reached $92.28B, up 18.8%. This gap is not a sign of weakness but a pause while AI investments build on the income statement.

The company's cloud and AI businesses are expanding quickly. Azure grew 48%, Microsoft Cloud brought in $63.9B (up 30%), and Copilot daily users rose over 5x year over year. Commercial remaining performance obligations — contracted revenue not yet recognized — reached $677B, up 73%, indicating strong forward demand.

Spending is the main risk. Cash capex hit $39.37B last quarter, up 102.99%, and management expects calendar-year capex of approximately $170 billion. Fiscal 2026 free cash flow slipped 6.46% to $66.99B. Yet operating cash flow reached $58.0B, up 28.73%, and free cash flow was $18.6 billion even in the biggest spending quarter. CFO Amy Hood said, “We still have demand that exceeds supply.”

FAQ

How much did Microsoft's stock rise over the past year?: Microsoft shares rose just 1.6% over the past year, even as net income grew 32.01% in the latest quarter.
What is Microsoft's valuation relative to earnings?: The stock trades at 29 times trailing earnings and 26 times forward earnings, with a 46.78% operating margin.
What did Microsoft guide for next quarter?: Management guided second-quarter Azure growth to 49 to 50% in constant currency and total revenue to $96 to $97.1 billion.

Yahoo Finance AIRead Original Article

Send on LINE

AI news that matters for your work, delivered every morning.

Pick your industry and the AI tools you use, and get news related to your work every day.

Get it free

Free · 30 seconds with Google · unsubscribe anytimeWhat is AIToday? →

Ask AI

Ask AI anything about this article. The AI reads this article, earlier AIToday articles, and Wikipedia, and cites its sources. Q&As are published on this page for other readers too.