A longtime Microsoft skeptic has reversed his stance, now calling the stock an easy buy for long-term investors after fiscal 2026 results showed revenue climbing 18% to more than $331 billion and operating income rising 21% to more than $155 billion. Net income reached $133.7 billion, with full-year EPS growth above 20% even excluding gains from OpenAI and Anthropic investments. The AI business crossed a $37 billion annual run rate, growing 123% year over year, while Microsoft 365 Copilot surpassed 30 million paid seats. Azure grew 43% year over year in fiscal Q4 2026, and CEO Satya Nadella highlighted custom AI chips delivering up to 40% better performance per watt. With a trailing P/E of 28 to 28.5, slightly below its 10-year average of 30, and forward P/E around 25, the analyst now sees the valuation as fair for a company with Microsoft's moat and growth profile.
