By Keithen Drury
Publication Date: 2026-02-08 12:15:00
Azure is the star of Microsoft’s report.
Microsoft (MSFT +2.00%) hasn’t had a great start to 2026. Its stock recently was down 11% for the year, with the bulk of that fall coming after its second-quarter fiscal year 2026 earnings report, when it declined 10% in a single day.
This decline will make it difficult to outperform the market in 2026, as the stock doesn’t get the benefit of starting at its current low price tag. It must make up the ground it has lost. The S&P 500 (^GSPC +1.97%) is up a mere 1%, so it doesn’t have a ton to make up. Still, it won’t be easy for Microsoft.
However, I think there’s one clear reason why Microsoft can still outperform the market in 2026, and it all revolves around Azure.
Image source: Getty Images.
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