By Khac Phu Nguyen
Publication Date: 2026-08-18 20:53:00
This article first appeared on GuruFocus.
Microsoft (NASDAQ:MSFT), the world’s leading enterprise software and cloud giant, held near unchanged at $480.78 Tuesday morning while the Nasdaq dropped more than 1%. In a market where investors were aggressively cutting exposure to expensive technology names, Microsoft stood firm a sign that the AI winners with real revenue are being separated from the hype.
The reason is simple: Microsoft is turning AI spending into actual business growth. The company’s latest results showed revenue climbing 18% to $90 billion, while operating income jumped 18% to $40.6 billion. Azure was the headline engine, with revenue surging 43% and crossing the $100 billion annual revenue milestone. Commercial remaining performance obligations also exploded 84% to $678 billion, giving Microsoft a massive pipeline of future revenue.
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