By Daniel Sparks, The Motley Fool
Publication Date: 2026-08-26 16:58:00
Microsoft (NASDAQ:MSFT) has just reported what was possibly one of the best years in its history. In fiscal 2026 (the year ended June 30), revenue rose 18% to $331.8 billion, and net income grew 31% to $133.7 billion.
The stock, however, did not follow the same path. Microsoft’s market cap, at about $3.59 trillion as of this writing, sits about 4.5% below where it was a year ago.
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How did this happen? The market put a different price on earnings. A year ago, investors paid about 37 times earnings for Microsoft. Today they pay about 27 times earnings.
Put another way, the business grew nearly a third, yet the price of each dollar of its earnings fell more or less…
