Microsoft: Concerns Are Pushed To The Background, At Least For Now

The Value Investor Investing Group Leader Follow Summary Microsoft delivered a robust fiscal 2026 finish, with Q4 sales up 18% to $90B and cloud growth accelerating to 32%. MSFT's Intelligent Cloud segment now leads, driving optimism despite elevated capital spending guidance of $175B for calendar 2026. Double-digit sales growth is guided for FY27, but operating margins are expected to decline by about a point amid gross margin pressure. While recent fears have eased and momentum improved, high capital intensity and cyclical sentiment swings temper the long-term value proposition. Looking for a helping hand in the market? Members of Value In Corporate Events get exclusive ideas and guidance to navigate any climate. Learn More » tupungato/iStock Editorial via Getty Images Early in May I believed that Microsoft ( MSFT ) was facing pressure from continued AI and software concerns, as the recent quarterly earnings report triggered a massive 15% rally over the last week. In fact, the one-day jump was the largest increase in This article was written by The Value Investor 28.1K Followers Follow The Value Investor has a Master of Science with specialization in financial markets and a decade of experience tracking companies via catalytic company events. As the leader of the investing group Value In Corporate Events they provide members with opportunities to capitalize on IPOs, mergers & acquisitions, earnings reports and changes in corporate capital allocation. Coverage includes 10 major events a month with an eye towards finding the best opportunities. Learn more. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.