Microsoft’s Market Performance in 2026
Microsoft (NASDAQ: MSFT) has seen its stock decline by 13.3% since the start of 2026, contrasting with other major tech companies that have recorded double-digit gains. As of Q3 fiscal year 2026, which ended on March 31, the company reported an 18% year-over-year increase in revenue and a 23% rise in net income. Additionally, Microsoft’s AI business surpassed an annual run rate of $37 billion, growing 123% year-over-year.
The drop in stock price may be attributed to its high valuation prior to the sell-off that began in October 2025. Microsoft is currently trading at 18 times operating cash flow, its lowest valuation since 2019. Analysts suggest that if the stock returns to an average valuation of 24 times operating cash flow, investors could see a potential return of over 30%.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
