Microsoft Business Booms, but Stock Price Lags Behind

Microsoft's net income for fiscal 2026 rose 31% to $133.7 billion, driven by revenue growth of 18% to $331.8 billion.

The company's market cap sits about 4.5% below where it was a year ago, despite its business growing nearly a third.

The contrast between Microsoft's underlying business performance and its stock price has investors paying less for each dollar of earnings, at around 27 times earnings compared to 37 times last year.