Microsoft CorporationMarket cap fell 4.5% despite earnings rise, due to concerns over AI disruption and heavy spending

Microsoft reported a 31% increase in net income to $133.7 billion for fiscal 2026, yet its market cap has fallen about 4.5% to $3.59 trillion. Revenue rose 18% to $331.8 billion, with Azure revenue topping $100 billion, up 41%, and commercial remaining performance obligation reaching $678 billion, up 84%. However, capital expenditures surged 80% to $115.9 billion, and free cash flow declined to about $67 billion from $72 billion. The stock now trades at about 27 times earnings, down from 37 times a year ago, as investors worry about AI disruption and heavy spending. The Motley Fool's Stock Advisor did not include Microsoft in its latest top 10 list.
Microsoft CorporationMarket cap fell 4.5% despite earnings rise, due to concerns over AI disruption and heavy spending
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