By Marc Guberti
Publication Date: 2026-08-06 11:15:00
Microsoft (MSFT +0.03%) flipped the script pretty quickly. The beleaguered tech stock briefly fell below $350 per share after trading above $553 per share less than one year ago. Then earnings came out, and Microsoft is suddenly charging back up toward $500 per share.
The tech leader looked extremely undervalued before earnings as investors ignored the company’s history of high revenue growth, potentially in favor of hotter artificial intelligence (AI) stocks. Now that Microsoft is back on investors’ radars, it’s worth assessing if the stock is still undervalued.
Image source: Getty Images.
Microsoft reported excellent earnings results
Microsoft Cloud continues to be the primary driver of the tech giant’s financial results. Cloud revenue increased by 27% year over year in its fiscal 2026 fourth quarter, making up $59.3 billion of the company’s $90 billion in total revenue. Across all business segments, overall sales were up 18% year over year.
Microsoft also told investors that…