Wedgewood Partners highlights Microsoft's $100 billion asset growth and 27% cash flow surge

Earnings
โดย Insider Monkey·Read original
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Wedgewood Partners, in its second-quarter 2026 investor letter, highlighted Microsoft Corporation's extraordinary financial performance, noting that the company ended the most recent quarter with average gross assets of more than $585 billion, up 22%, while generating $170 billion in gross cash flow over the prior four quarters, a 27% increase from a year ago. The firm emphasized that Microsoft added an average of $100 billion in assets and $27 billion in incremental cash flows, achieving nearly 30% returns while compounding the assets that generate those returns at more than 20%. Wedgewood also pointed to Microsoft's reported investment in OpenAI worth over $100 billion, suggesting that these potential gains could serve as a hedge against commodity inflation, particularly incremental DRAM-related capital expenditure. The letter noted that Microsoft, along with Amazon and Meta, offers a similar investment opportunity set to Alphabet from both a compounding and cost-hedge perspective. Microsoft shares closed at $401.10 on July 16, 2026, with a one-month return of 3.55% and a 52-week loss of 22.77%, and a market capitalization of $2.98 trillion.

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Wedgewood Partners highlights Microsoft's $100 billion asset growth and 27% cash flow surge, strong financial performance.

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