By Khac Phu Nguyen
Publication Date: 2026-08-24 19:50:00
This article first appeared on GuruFocus.
Microsoft (NASDAQ:MSFT), the enterprise-software, cloud and artificial-intelligence powerhouse, climbed approximately 1.1% to $488.93 Monday even as semiconductor stocks dragged the Nasdaq lower. That resilience is no accident. Investors see Microsoft’s colossal contracted backlog as a powerful cushion if the technology trade cracks again.
Fiscal fourth-quarter revenue jumped 18% to $90 billion, Azure growth accelerated to 43% and commercial remaining performance obligations exploded 84% to $678 billion. Roughly 30% of those commitments should convert into revenue within 12 months, while Microsoft Cloud revenue advanced 27% to $59.3 billion. The demand is already booked. Now Microsoft must deliver it.
The valuation picture adds fuel to the bull case: Microsoft’s $488.93 share price sits 15.51% below its…
