By Sasha Jovanovic
Publication Date: 2026-10-30 03:20:00
Microsoft stock barely moved today, slipping 0.2% to about US$530 after a year where the shares climbed strongly and traders had already priced in big expectations. The latest Q1 FY27 earnings drop was anything but sleepy. Revenue reached US$92.3b and basic earnings per share came in at US$4.93, both backed by a powerful cloud and artificial intelligence engine.
In the short term, that muted price reaction can look underwhelming. Over a longer horizon, the focus shifts to the gap between a 27.6x P/E and a valuation case that still leans on aggressive AI buildout and heavy capital spending.
Love the sheer scale of Microsoft’s US$92.3b quarter and US$4.93 in earnings per share, but uneasy about paying a 27.6x P/E multiple tied to heavy AI spending and capex commitments? Compare that profile with companies filtered for stronger balance sheets and disciplined fundamentals in our list of solid balance sheet and fundamentals stocks (23 results).
