By Khac Phu Nguyen
Publication Date: 2026-10-23 18:23:00
This article first appeared on GuruFocus.
Enterprise-software and cloud giant Microsoft (NASDAQ:MSFT) traded at $520.30, down approximately 0.15%, at 9:55 a.m. ET ahead of Wednesday’s earnings. The spending bill is getting as much attention as the sales pitch. According to Reuters, investors are sharpening their focus on returns from hyperscalers’ capital spending.
Microsoft’s latest quarterly release put cloud revenue at $59.3 billion, up 27% year over year. Annual Azure revenue topped $100 billion, while Microsoft 365 Copilot passed 30 million paid seats. Those numbers give investors something concrete to track: how quickly cloud demand and paid AI adoption translate into earnings.
The valuation picture shows shares 12.61% below the $595.41 GF Value estimate, suggesting potential upside if Microsoft delivers on growth and profitability. That discount alone does not settle the investment case. Data-center…
