By Joel South
Publication Date: 2026-05-06 11:30:00
Quick Read
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Microsoft (MSFT) trades at a forward P/E of 22 with AI business growing at triple digits, a $627 billion commercial backlog (up 99% YoY), and Azure expanding at 40% with the AI franchise hitting a $37 billion annualized run rate.
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Microsoft’s valuation has reset 14% year-to-date despite accelerating fundamentals, with management guiding another year of double-digit revenue and operating income growth while maintaining a 33% return on equity and 46% operating margins.
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The analyst who called NVIDIA in 2010 just named his top 10 stocks and Microsoft wasn’t one of them. Get them here FREE.
Microsoft (NASDAQ:MSFT) is the easiest large-cap decision a retirement portfolio will make this year, with shares trading at a forward P/E of 22 while the AI business compounds at triple digits and a contracted backlog underwrites years of revenue. The pullback to around $411 from the 52-week high of $552.45 hands long-term buyers a discounted entry.
