Key Facts
On June 4, 2026, Microsoft (NASDAQ: MSFT) experienced a modest gain despite a significant sell-off in semiconductor stocks, which included Broadcom’s 10% drop. The company’s AI division achieved an annual revenue run rate of approximately $37 billion, marking a year-over-year increase of 123%. Microsoft continues to derive much of its AI revenue from recurring software and cloud subscriptions.
In its fiscal third quarter, Microsoft reported total revenue of $82.9 billion, an 18% rise year over year, with earnings per share climbing 23%. The revenue from Azure and other cloud services grew by 40%, while Microsoft’s commercial backlog reached $627 billion, nearly double the previous year’s figure. Furthermore, the company plans to increase its capital expenditures in the upcoming quarter to over $40 billion.
Despite this growth, Microsoft is mindful of potential risks, including a slowdown in enterprise AI adoption and customer concentration issues, particularly with OpenAI. Currently, the stock trades at a price-to-earnings ratio of around 26, suggesting a relatively reasonable valuation in light of its ongoing revenue and profit growth.
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.
